URDANETA CITY National Service Training Program

UNIVERSITY
Owned and operated by the City Government of Urdaneta

ENTREPRENEURSHIP

CRISANIE L. CACANINDIN, LPT, MAEd

NSTP Instructor
 TOPIC OUTLINE

• Entrepreneurship and the Entrepreneur

• Qualities needed to succeed in an Entrepreneurial Environment

• Entrepreneurship and Community Development

• Government's Role and Undertaking in Entrepreneurship Development

• The Entrepreneurship Process

• Entrepreneurship and Franchising

• Entrepreneurship and Social Entrepreneurship

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 ENTREPRENEURSHIP
AND THE
ENTREPRENUER

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 ENTREPRENEURSHIP

◆ according to Howard Stevenson of the Harvard Business School, it is “exploiting an opportunity

regardless of the resources currently available.” Stevenson goes on to say, “The key to this
perspective is the focus on opportunity” (not resources).

◆ As defined by Prof. Nathaniel Left (cited in Fajardo, 1997), entrepreneurship is the capacity for
innovation, investment and expansion in new markets, products and techniques.

◆ Prof. Hirsh states that entrepreneurship is more than a word. It is a mission

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 ENTREPRENEUR

◆ The word entrepreneur originates from the French word “entreprendre” which means “to
undertake.” Entrepreneur is an individual who organizes, manages and assumes the risk of business
or enterprise (Webster Dictionary).

◆ Jean Baptiste Say, the French economist, described entrepreneurs as “the venturesome individuals
who stimulated economic progress by finding new and better ways of doing things.”

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 To an Economist To a Psychologist To a Businessman

an entrepreneur appears as a
an entrepreneur is one who such a person is typically driven
threat, an aggressive competitor,
brings resources, labor, by certain forces-the need to whereas another businessman
the same entrepreneur may be an
materials, and other assets into obtain or attain something, to
ally, a source of supply, a
combinations that make their experiment, to accomplish, or customer, or someone who
creates wealth for others ,as well
value greater than before, and perhaps to escape the authority
as finds better ways to utilize
also one who introduces of others. resources, reduce waste, and
produce jobs others are glad to
changes, innovations, and a new
get
order.

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 Joseph Schumpeter, the 20th century economist explained that the function of entrepreneurs is
to reform or revolutionize the pattern of production by exploiting an invention or, more generally, an
untried technological possibility for producing a new commodity or producing an old one in a new
way, by opening up a new source of supply of materials or a new outlet for products, by reorganizing
an industry and so on.” For him entrepreneurs could achieve their economic objectives if their
mindsets are innovative, creative and goal-oriented

Schumpeter famously listed the five (5) main types of innovations:

• a new good,”
• “a new method of production,”
• “a new market,”
• “a new source of supply of raw materials,“ and
• “the carrying out of a new organization of any industry.”

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 QUALITIES NEEDED TO SUCCEED IN AN
ENTREPRENEURAL ENVIRONMENT

• Can Roll with the Punches • Ability to get things done

• Endless Motivation • Incredible patience

• Has the Hunger to learn • Unmatched Perseverance

• Tolerance of Ambiguity • Dedication is the Key

• Love of the Circus • True Grit

• Knows where to drive • Teamwork is a must

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 ENTREPRENEURSHIP AND COMMUNITY DEVELOPMENT

Entrepreneurship as a Community Service

According to the Youth employment Network, entrepreneurship is a veritable tool for

tackling the twin challenge of poverty and unemployment. It is for this reason that the
national government has to intensify its community development activities in order to
transform unemployed youth from job seekers into employers of the workforce.

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 ROLE OF ENTREPRENEURSHIP FOR COMMUNITY
DEVELOPMENT

(1)Promotes Capital Formation by mobilizing the idle savings of public. They employ their own as well
as borrowed resources for setting up their enterprises. Such type of entrepreneurial activities leads to
value addition and creation of wealth, which is very essential for the industrial and economic
development of the country.

(2)Creates Large-Scale Employment Opportunities

Entrepreneurs provide immediate large-scale employment to the unemployed which is a chronic
problem of underdeveloped nations.

(3)Promotes Balanced Regional Development

Entrepreneurs help to remove regional disparities through setting up of industries in less developed and
backward areas.

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 (4)Reduce Concentration of Economic Power
Economic power is the natural outcome of industrial and business activity. Industrial development
normally leads to concentration of economic power in the hands of a few individuals which results in
the growth of monopolies.

(5)Wealth Creation and Distribution

It stimulates equitable redistribution of wealth and income in the interest of the country to more people
and geographic areas, thus giving benefit to larger sections of the society.

(6)Increasing Gross National Product and Per Capital Income

Entrepreneurs are always on the look-out for opportunities. They explore and exploit opportunities,
encourage effective resource mobilization of capital and skill, bring in new products and services and
develops markets for growth of the economy

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 (7)Improvement in the standard of Living
Increase in the standard of living of the people is a characteristic feature of economic development
of the country.

(8)Promotes Country’s Export Trade

Entrepreneurs help in promoting a country’s export-trade, which is an important ingredient of
economic development.

(9)Induces Backward and Forward Linkages

Entrepreneurs like to work in an environment of change and try to maximize profits by innovation.

(10)Facilities Overall Development

Entrepreneurs act as catalytic agent for change which results in chain reaction. Once an enterprise is
established, the process of industrialization is set in motion.

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 GOVERNMENT’S ROLE AND UNDERTAKING IN ENTREPRENEURSHIP
DEVELOPMENT

1.Peace and Order

2.Political Stability
3.Price Stability
4.Revenue Collection
5.Infrastructure and Training
6.Education and Training
7.Public Administration
8.Production Technology
9.Marketing Assistance

13 10.Financial Assistance
GOVERNMENT UNDERTAKING FOR ENTREPRENEURSHIP
DEVELOPMENT
1. The One Town One Product (OTOP) – a priority program to promote entrepreneurship that
creates jobs. Through OTOP, local chief executives of each city and municipality take the lead in
identifying, developing and promoting a specific products or services that are seen with potential
competitive advantage.
OTOP-Philippines supports micro, small, and medium enterprises (MSMEs) to manufacture,
offer, and market distinctive products or services through the use of indigenous raw materials and
local skills and talents. It offers a comprehensive assistance package through a convergence of
services from local government units. (LGUs), national government agencies (NGAs), and the
private sector. This includes:

·Business counselling
·Appropriate technologies
·Skills and entrepreneurial training
·Marketing
·Product designs and development
2. The National Youth Commission offers the Youth Entrepreneurship Financing Facility Program
(YEFFP) that aims to:
a)Enhance the entrepreneurial skills of the Filipino Youth;
b)Support the business ventures of young people with technical and entrepreneurial skills, who
otherwise are ineligible under regular credit facilities, by providing them easier access to credit;
c)Encourage the self-employment of the Filipino youth; and
d)Establish a credit program for entrepreneurs.

3. The Medium-Term Philippine Development Plan or MTPDP is the Philippines’ blueprint of

growth. This program envisions a nation where only a small proportion of the population is
considered poor. The MTPDP calls for the development of an entrepreneurial culture by
improving access to information on business opportunities, available raw materials, skills and
entrepreneurship training, prospective fund sources and access to the latest technologies.
 THE ENTREPRENEURIAL PROCESS

Entrepreneurial process is the process of pursuing a new venture, whether it be new products
into existing markets, existing products into new markets, and/or the creation of a new
organization.

The process has four distinct phases:

(1) identification and evaluation of the opportunity;
(2) development of the business plan;
(3) determination of the required resources; and
(4) management of the resulting enterprise
 ENTREPRENEURSHIP AND FRANCHISING

Entrepreneurship and franchising are two concepts that are closely intertwined or connected.
Many entrepreneurs enter long-term relationships such as franchising, an important area of
entrepreneurship research (Mark Pruett & Greg Winter, 2011). Franchising is a powerful
economic engine because of it is a sophisticated, entrepreneurial alliance through which
thousands of individuals create vast wealth.

Opportunity is the core of entrepreneurship. Bill Gates once said, “Vision is the easy part.” But
when you think you have the vision, the good idea, you very next question must be, “Is it an
opportunity.” Therefore, an entrepreneur must understand what separates an opportunity from an
interesting idea. They have to think in terms of the three subsets of opportunity recognition:
market demand, market size and structure, and margin analysis.
 ENTREPRENEURSHIP AND SOCIAL INTRPRENUERSHIP

Social Entrepreneurship
According to J. Gregory Dees, social entrepreneurship combines the passion of a social mission with an
image of business –like discipline, innovation, and determination.

Social Entrepreneur
The social entrepreneur harnesses entrepreneurship skills to do social good. The social entrepreneur’s
philanthropic energies are channeled into business ventures, creating value in business so that consumers are
willing to pay for the goods and services, and by doing so, the social entrepreneur earns a profit which is
invested in the social ventures.

Difference between Entrepreneurship and Social Entrepreneurship

The entrepreneur’s final objective is wealth creation. However, for the social entrepreneur, wealth
creation is simply a means to an end. The social entrepreneur participates in profit-seeking business ventures
if only to use the profits generated to create valuable social program for the whole community.
The Growing Need for Social Entrepreneurs

In the current economic crisis, financial pressures are exacerbating existing social problems such
as poverty and unemployment. According to J. Gregory Dees, social entrepreneurship is
necessary to mitigate the financial repercussions and consequences on the most vulnerable in
society.

Qualities of a Good entrepreneur

It is clear that anyone can become an entrepreneur, but only the good entrepreneurs are
successful and manage to get the fruits of their investment. There are some distinctive qualities
that are required to be a successful entrepreneur.
 CONFIDENT
PERSEVERANCE
COMPETITIVENESS

INTERPERSONAL
SKILLS
QUALITIES OF A
GOOD LEADERSHIP
WILLINGNESS TO
TAKE ENTREPRENEUR
CALCULATED
RISKS

MOTIVATION PASSION
TIME
MANAGEMENT
THANK
YOU
FOR LISTENING!!!!