GEE 003 - General Education Elective 3
MODULE 1
1.1 Introduction,
Entrepreneur' Skills
Definition
of
Terms,
Introduction
Entrepreneurship particularly drives the
modern global economy, is the primary source
of job creation. Entrepreneurship in its broadest
sense is any enterprise or effort that adds value
to the lives of people.
Everything all around has its roots in
entrepreneurship in some way. It is the
innermost component in the economic growth,
the opening of new markets, and serves as a
critical spur for the money-making, introduction
of new goods and services, innovations, and
inventions.
Entrepreneurship is the philosophy in which an
individual is an imaginative and innovative
agent with an aspiration for ownership and the
right to make proprietary decisions, a body of
knowledge, and create wealth for the individual
and value to the society.
There
are
various
definitions
of
entrepreneurship. However, the key concept is
innovation. This refers to new or different ways
of doing things which include technology,
marketing management, HR management
among others. Innovation can be observed
when a creative individual creates a new
product or when he sells his product
considering a different approach. Thus, it is the
innovation that distinguishes entrepreneurship
from other activities.
In view of the innovative nature of
entrepreneurship, it is capable of generating or
creating jobs, goods, services, and even wealth.
Because of this, there is a better economy for a
country and a higher standard of living.
However,
the
real
contributions
of
entrepreneurship can be measured in terms of
the welfare of the people.
Who are Entrepreneurs?
Entrepreneurs normally defined as 'risktakers' in new-venture creations are uniquely
optimistic, hard-driving committed individuals
who derive great satisfaction from being
independent. He combines sound judgment
and planning with risk-taking to ensure the
success of his or her own business.
Entrepreneurs, driven by an intense
commitment and determined perseverance,
work very hard. They are optimists who see the
cup as half full rather than half empty. They
strive for integrity.
They burn with the
competitive desire to excel. They use failure as
a tool for learning.
They have enough
confidence in themselves to believe that they
personally can make a major difference in the
final outcome of their ventures.
Definition of Terms
The ways to define terms will help
students better understand the lessons and
discussions and will serve as the standard level
on how skilled students may become in
sentence construction when defining terms. At
the end of the course, you are expected to
define words or terms or give meaning using
the technical and operational definitions.
The 'corridor principle' is which states that
once an entrepreneur starts a firm and
becomes immersed in an industry, “corridors”
leading to new venture opportunities become
more apparent to the entrepreneur than to
someone looking in from the outside.
GEE 003 - General Education Elective 3
The entrepreneur is an individual who creates a
new business, bearing most of the risks and
enjoying most of the rewards.
Entrepreneurship is the process of setting up a
business, it serves to generate economic
wealth, growth, and innovation.
Social entrepreneurship is to create a benefit to
society and humankind, focusing on helping
communities or the environment through their
products and services. They are not driven by
profits but rather by helping the world around
them.
External locus of control tends to believe that
they are not able to affect a personal outcome
and that luck or destiny are responsible for their
actions.
Strategic Entrepreneurship actions are planned
for seeking competitive advantage, which
accelerates entering into new products,
processes, technological advancements, and
markets by new ventures and incumbents.
Ethical Dilemmas a situation in which a difficult
choice has to be made between two courses of
action, either of which entails transgressing a
moral principle;
The triple bottom line maintains that
companies should commit to focusing as much
on social and environmental concerns as they
do on profits.
Entrepreneurial cognition is concerned with the
‘knowledge structures’ that people use to make
assessments, judgments, or decisions involving
opportunity evaluation, creation, and growth
Water well strategies are the ability to gather
or harness special resources (land, labor,
capital, raw materials) over the long term.
Internal locus of control individuals generally
hold themselves responsible for actions and
consequences
An intrapreneur is an employee who is tasked
with developing an innovative idea within a
company and can draw on its resources to do
so.
Macro view of entrepreneurship presents a
broad array of factors that relate to success or
failure in contemporary entrepreneurial
ventures;
The Entrepreneur skills
Entrepreneurial skills can encompass a broad
range of various skillsets like technical skills,
leadership and business management skills, and
creative thinking. Because entrepreneurial skills
can be applied to many different job roles and
industries, developing your entrepreneurial
skills can mean developing several types of skill
sets.
Micro view of entrepreneurship examines the
factors that are specific to entrepreneurship
and are part of the internal locus of control
For instance, to be a successful business owner,
you may need to develop your business
management skills. To build and maintain
successful project teams you might need to
improve your leadership and communication
skills.
Mountain gap analysis entails identifying major
market segments as well as interstice (inbetween) markets that arise from larger
markets.
Entrepreneurs also have been characterized as
the interaction of the following skills; inner
control, planning and goal setting, risk-taking,
innovation, reality perception, use of feedback,
GEE 003 - General Education Elective 3
decision-making, human
relations, and
independence.
In addition, many people
believe that successful entrepreneurs are
individuals who are not afraid to fail.
1.3 Confrontation with Risk, Characteristics of
Successful Entrepreneurs
1.2 Success Stories
Starting or buying a new business involves risk.
The higher the rewards, the greater the risks
entrepreneurs usually face. It should be noted
that people who successfully innovate and start
businesses come in all shapes and sizes but,
they do have a few things others do not. They
are willing to accept risk for what they believe
in. Entrepreneurs face a number of different
types of risk, the four basic areas are:
1. Henry Sy

SM
2. Tony Tan Caktiong

JOLLIBEE
3. Socorro Ramos

NATIONAL BOOKSTORE
4. John Gokongwei Jr.


ROBINSON
CEBU PACIFIC
5. Joe Magsaysay

POTATO CORNER
6. Edgar Sia

MANG INASAL
7. Cresida Tueres

GREENWICH
8. Milagros, Clarita, and Doris Leelin

GOLDILOCKS
9. Mariano Que

MERCURY DRUG STORE
10. Araceli and Jun Manas

HEN LIN DIMSUM
The Entrepreneur's Confrontation with Risk
1. Financial Risk. Entrepreneurs must
have a solid understanding of financial
management and put that knowledge
to use in business every day. The
knowledge of entrepreneurial finance is
so often the difference between
success and failure, all entrepreneurs
should
devote
themselves
to
understanding the key financial
indicators for their particular business.
Some at stake are personal resources
that were put into the venture and a
likelihood, be lost if the venture fails.
2. Career Risk. A frequently raised
question by would-be entrepreneurs is
whether they will be able to find a job
or go back to their old job, should their
venture fail. This is a major concern to
managers who have a secure
organizational job with a high salary
and good benefits package.
3. Family and Social Risk. To start a new
venture requires much of the
entrepreneur's energy and time, which
can, in turn, create a family and social
risk. His commitments expose his/her
families to the risk of incomplete family
experience and the possibility of
GEE 003 - General Education Elective 3
permanent emotional scars, even old
friends may vanish eventually as they
missed get-togethers.
4. Psychic Risk. This may be the greatest
risk to the well-being of the
entrepreneurs. Some entrepreneurs
who
have
suffered
financial
catastrophes have been unable to
bounce back, at least not immediately.
The psychological impact has proven to
be too severe for them.
3.
4.
Characteristics of Successful Entrepreneurs
Many people dream of running their own
businesses. They would like to become
entrepreneurs.
Entrepreneurship can be
exciting, but many go into it not realizing how
difficult it is to run their own business. In fact,
statistics show that most new businesses will
fail within a few years.
These start-up
businesses fail because of the owner's poor
planning, lack of business knowledge, lack of
entrepreneurial characteristics, inability to work
with others, or failure to choose the right
business. New characteristics are continually
being added to the evergrowing list of the most
often cited entrepreneurial characteristics, it
does provide important insights into the
entrepreneurial mindset
1. Determination and Perseverance. A
total dedication to success as an
entrepreneur can overcome obstacles
and setbacks. Sheer determination and
an unwavering commitment to succeed
often win out against odds that many
people would consider insurmountable
2. Drive to Achieve. Entrepreneurs are
self-starters who appear to others to be
internally driven by a strong desire to
compete, to excel against self-imposed
5.
6.
7.
standards, and to pursue and attain
challenging goals
Opportunity Orientation. It is the
constant awareness of opportunities
that exist in everyday life. Successful
entrepreneurs
start
with
the
opportunity and let their understanding
of it guide other important decisions.
Persistent
Problem
Solving.
Entrepreneurs are not intimidated by
difficult
situations.
Although
entrepreneurs are extremely persistent,
they are realistic in recognizing what
they can and cannot do and where they
can get help to solve difficult but
unavoidable tasks.
Seeking
Feedback.
Effective
entrepreneurs often are described as
quick learners, with a strong desire to
know how well they are doing and how
they might improve their performance.
Feedback is also central to their
learning from mistakes and setbacks.
Internal Locus of Control. Successful
entrepreneurs believe in themselves.
They do not believe that the success or
failure of their venture will be governed
by fate, luck, or similar forces and they
believe that their accomplishments and
setbacks are within their own control
and influence and that they can affect
the outcome of their actions.
Tolerance for ambiguity.
Start-up
entrepreneurs
faces
uncertainty
compounded by constant changes that
introduce ambiguity and stress into
every aspect of the enterprise. A
tolerance for ambiguity exists when the
entrepreneur can deal with the various
setbacks and changes that constantly
confront him/her.
GEE 003 - General Education Elective 3
8. Calculated Risk Taking.
Successful
entrepreneurs are not gamblers, they
are calculated risk-takers when they
decide to participate in a venture, they
do so in a very calculated, carefully
through-out manner.
9. High
Energy
Level.
Many
entrepreneurs fine-tune their energy
levels by carefully monitoring what they
eat and drink, establishing exercise
routines, and knowing when to get
away for relaxation.
10. Creativity
and
Innovativeness.
Entrepreneurs are able to blend
imaginative and creative thinking with a
systematic, logical process ability, they
think of new ways to market their
businesses and are always looking for
new solutions to problems.
11. Vision. They have a vision or concept of
what their firms can be, this vision
develops over time as the individual
begins to realize what the firm is and
what it can become.
12. Passion. Entrepreneurial passion is a
fundamental emotional experience for
entrepreneurs to provide a coherent
understanding of an emotional
experience of intense arousal and
energy mobilization involving an
entrepreneur in his or her venture. This
is also characterized by a discrete
emotion that is quite intense being
described as an underlying force that
fuels our strongest emotions. Thus,
entrepreneurial passion is recognized as
a fundamental component of the
entrepreneurial mindset.