THE ENTREPRENEURIAL MIND
Introduction
 entrepreneurship has been related with
launching new businesses
 today, entrepreneurship is a life skill
 entrepreneurship
is
composed
of
collective mindsets and skillsets
Entrepreneurship Views
Predictive Approach
 entrepreneurship as a linear process
where there are streps to do and the
results are usually predictable
 works best during times of ambiguity
 when there is enough information where
to base decisions
Creation Approach
 entrepreneurship as a mindset and a
method that needs practice used only
when the nature is unpredictable and not
certain
 define
their
goals
based
from
the
resources available at hand
 in the initial phase of a business, creation
is vital
The
Start
of
Entrepreneurship
in
the
Philippines
 country has a growing average of 6%
economic growth
 poverty prevalence us beyond 20% of the
total population
 entrepreneurship become the solution to
poverty through job formation, wealth
creation, and social empowerment
 Philippine
government
sees
entrepreneurship as the sole means to
address poverty problem
 1987
Philippine
Constitution
identifies
entrepreneurship as an instrument of economic
growth
 Art. 7 Sec. 1 - role of private enterprises in
supporting fair distirbution of income and
wealth, satisfying production of goods and
services and escalating productivity
 government's
objective
of
economic
development and job formation has been
placed in the supervision of the Philippine
Development Plan (PDP)
 pursuit is on strengthening the Philippines'
competitiveness and contribute to job
formation
 evolution of entrepreneurship has been
influenced by fast integration of economies and
globalization of markets
 concept of entrepreneurship is just to support
the different factors of production
 entrepreneurship involves the capacity to see
an opportunity, come up with an idea and
organize all the resources and skills and form
business ventures not just locally but
internationally
 Philippine Chamber of Commerce and Industry,
the agency under the Office of the President is
an advocate of entrepreneurship which formed
the Philippine Center for Entrepreneurship (PCE)
 PCE has created the "Go Negosyo Communities"
everywhere
 academic, business and government sectors
have collaborated to form these communities
 professors, entrepreneurs, industry experts and
venture capitalists had joined hands to
constantly network, mentor and cooperate to
support a feasible policy infrastructure
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THE ENTREPRENEURIAL MIND
 all "Go Negosyo" communities have their
abilities to continuously create start-up
ventures
 entrepreneurship lessons are embedded into
the school curriculum to cultivate a culture of
enterprise and nurture tomorrow's competitive
entrepreneurs
 country has now regarded entrepreneurship as
a way of thinking and not just an economic
term
 entrepreneurship has become a way of
motivating innovative individuals to pursue
opportunities regardless of its risks
 challenge for the Philippines is to provide good
leadership that can help social reforms through
entrepreneurship and with this, they can surely
propel the economy and the society in progress
Skills Important in Entrepreneurship
1. Skill of Play - entrepreneurs may benefit
and enjoy as if playing while doing
creative things that can boost relations
with others
2. Skill of Experimentation - to act so as to
learn
3. Skill
of
Empathy
-
means
being
sympathetic with the feeling, situation,
purposes, opinions, and wants of other
people
4. Skill of Creativity - means being openminded and letting loose one's ability to
create, discover opportunities and resolve
problems
The Ways To Do Reflection
1. Narrative - describing what happened in terms
of what took place, what was said, and the
people involved
2. Emotional - centers on the feelings and the
management of these feelings during a certain
situation
3. Perceptive - focuses on ones insights and
feeedbacks as well as the others in addition to
how various views, needs or inclinations
affected the experience
4. Analytical - rationalizing about skills and
understanding obtained from an experience
and relating what has been learned to anything
heard before
5. Evaluative - what went well as well as what
went bad or whether the experience was useful
or not
6. Critical - roled played in a situation, the
approach applied, what could still might be
done, the lessons from the experience, queries
in mind, and the anticipation of the possible
result
The Truths about Entrepreneurship
1. Entrepreneurship is Not Solely for Startups
 business does not remain to be a startup,
because it can always develop and progress
into something bigger
 being a startup is not the only track,
entrepreneurs because they can be all over,
from companies to franchises, to profit and
non-profit organizations, to family-owned
businesses
5. Skill of Reflection - organizes all the
four skills mentioned here
2. Entrepreneurs Do Not Have Exceptional
Personality Qualities
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THE ENTREPRENEURIAL MIND
 there is really no evidence to prove that
entrepreneurs possess specia personality
qualities above others
 there are four recognized qualities of an
entrepreneur which being are being an
achiever, an influencer, a risk -taker and
open-minded for uncertainty
 the focus of academicians and researchers
is how entrepreneurs think and act
3. Entrepreneurship can be Taught Yet Entails
Practice
 most schools teach entrepreneurship as a
linear process and this is predictable
 in reality, entrepreneurship is unpredictable
and it requires a person to possess a set of
skills
 skills should be improved continuously
through practice so that they can be used
for entrepreneurial action, not just for
today but also for the future.
4. Entrepreneurs are Not So Much Risk-Takes
 are really risk-takers but they normally
would make calculations first prior to taking
the next step
 measure every lose they are willing to take
on each step of what they do
 take every single step as lesson to learn and
make use of said lesson on the next level
5. Entrepreneurs Work in Partnership More Than
They Compete
 working in partnership not only works with
the rest of the entrepreneur but also with
target consumers, with prospective
investors and with family and friends
 partnership usually brings about more
efficiency, additional fresh ideas and
produces ingenuity and innovation
6. Entrepreneurs are More on Doing than
Planning
 successful entrepreneurs had acted through
going out our streets, talking to people,
relating with customers, buzzing about their
offerings whether product or service, and
most importantly they form a solid
netwowrking
 investors are interested with the action of
every entrepreneur such as the relationship
he has with his customers and how he has
arouse the interest of these customers
 investors are more fascinated with the
ability of an entrepreneur to deal with a
series of difficult situations, able to solve
problems and take positive feedback as he
is mentored
7. Entrepreneurship is Truly a Life Skill
 lot of people as well as organizations these
days consider entrepreneurship as a skill
that is useful in every human's life
 life skill entrepreneurship can offer the
methodological
way
of
thinking,
opportunity identification, specific way of
problem-solving, adapting to new situations
and governing one's goals and ambitions
Life Skill for Entrepreneurs
1. Resilience - being able to deal with setbacks
through bouncing back and refocus after failure
2. Agility - responding speedily and conclusively to
adjust to dynamic changing environment and
situations, grab new opportunities and be
competitive
3. Negotiating - setting boundaries, ensuring for a
good relationship and understanding that a
good rapport is necessary to give any business
the best chance of success
4. Problem Solving - creating solutions from minor
technical difficulties to major financial
headaches
5. Relationship Building - give and take
relationship of the entrepreneur with a supplier,
investor or even his employee
6. Mindfulness - ability to disconnect from the
pressure and focus on being in the moment by
3
THE ENTREPRENEURIAL MIND
techniques such as breathing and meditation to
better manage ones thoughts and feelings and
escape from being burdened by them
Types of Entrepreneurship
1. Intrapreneurship
 refers to encouraging people to discover highrisk, high-reward concepts with the support of a
big corporate organization
 Google for instance is an example of a company
that supports its employees to provide the 20%
of their time for innovative projects (very
reason why about half of the company's new
products come from intrapreneurship
2. Entrepreneurs Inside
 almost similar with intrapreneurship
 entrepreners function inside any type of
organization such as government agencies, nonprofit organizations, religious entities, selfemployed and even cooperatives, whether they
are big or small
 must be supported by management but
becomes difficult due to resistance of
management to support novel ideas
 Puregold is a popular trader of consumer
products such as canned goods, housewares,
toiletries, dry goods, and food products, among
others) on a wholesale and retail basis. It has
popularized the "Palengke Day" where fruits
and vegetables are sold on "everyday prices"
for the budget-conscious customers. Although a
bit unattractive looking from the outside still
they are fresh inside. This is a way of reaching
out to more market which is an example of
entrepreneurs inside.
3. Buying a Franchise
 franchise - type of license bought by an
entrepreneur as the franchisee from an existing
branded business (franchisor) so that they may
do business under the name of said brand
 license serves as the right to open the business
using the brand's proven business model and
system, its proven pricing, products and
promotional tactics
 franchisee has the complete access to the
brand's logos, slogans, signages and other
things related to it
 franchising these days because it is already a
ready business
 franchisee just needs to "turn key" the
operation to start the business
4. Buying a Small Business
 entrepreneur buys out the existing owner and
takes the management and operations of the
small business
 involves more upfront cost and also presents
less risk than starting from zero
 new owner may be able to acquire valuable
patents or copyrights, or have the opportunity
to drive an unprotective business in an exciting
direction with his expertise
Advantages of Buying Small Business
 new owner is able to take over an
operation that has already making cash
flow and profits
 has an established customer base,
reputation and employees who are
familiar with all aspects of the business
5. Social Entrepreneurship
 pursuing innovative applications that have
the likelihood of solving community-based
problems
 may try to produce environmentallyfriendly products, serve an underserved
community, or focus on philanthropic
activities
 Bayani Brew is an example wherein they
used indigeneous ingredients supplied by
substicence farmers to help them in their
livelihood
6. Family Business
4
THE ENTREPRENEURIAL MIND
 owned and managed by members of the
family that is usually handed down from
generation to generation
 essential for business survival to have an
entrepreneurial program done by each
generation
 most family businesses shirk to their old
ways and are unwilling to embrace
changes
 ShoeMart, Metrobank, the Aboitiz Group,
and D.M. Consunji, Inc. (DMCI) ong are am
the many owned and managed brands by
some of the most influential families in the
Philippines
 family firms account for two-thirds of all
businesses around the world and 80
percent of businesses are family-owned
and -controlled
 Fu Pu Kuo San Tai (wealth does not pass
three generations)
o first-generation founder works
hard to construct the business
o second generation becomes heir to
it and grows the family wealth
o third generation wastes it and puts
an end to the business
7. Serial Entrepreneurs
 constantly crops up with fresh ideas and starts
new businesses
 habitual one who takes the challenge of
repeatedly initiating up a business
 give the responsibility of running the operations
of each business it started once it is established
and move on to other projects
 often sell his business earlier
 sometimes continuously able to make profits
without much effort on his part by partnership
with new owner/s of his initiated companies
Entrepreneurship as a Method
 method - systematic way of doing task
 process - sequence of steps to take to attain
something
 steps to take to attain something. Usually,
entrepreneurship is considered a process with
steps that could lead to a successful business
 view of entrepreneurship has been shifted as a
method to manage the confusion, although this
does not guarantee success
The Entrepreneurial Method (Prof. Saras
Sarasvathi)
 describes a logic of thinking that is usually
used by some of the most successful
entrepreneurs to form their ventures
Effectuation
 idea in entrepreneurship that the future is
unpredictable yet controllable
 Sarasvathy believes that the focus of effectual
entrepreneurs is to create a future instead of
predicting it
Five Principles Behind Effectuation
1. Bird in Hand
 creating solutions using the resources
available at the disposal of entrepreneurs
instead of having goals in mind
 trying to build a new venture should start
with his available means
 knowing who they are, what they know,
and who they know (important things for
possible success of any venture)
 it is significant to not just concentrate on
one particular goal, but to be exposed for
fresh possibilities and opportunities
2. Affordable Loss
 entrepreneur should define his affordable
loss to limit the disadvantage risk
 only invest much that an entrepreneur is
willing and can afford to lsoe
 failures could be prevented earlier and only
work for what is possibly could be
controlled
3. Crazy Quilt
 entering into new partnerships that can
bring new opportunities and redices
uncertainty
5
THE ENTREPRENEURIAL MIND
 business shall become successful through
cooperation with other people and
companies and not by new competition
 partnerships can help form markets with
people who have a corresponding skill set
to the entrepreneur, which considerably
lessens his own risk
4. Lemonade
 entrepreneurs always expect these
surprises and must welcome contingencies
 they see opportunities arising in the midst
of unforeseen consequences
5. Pilot in The Plane
 entrepreneurs in this principle believe that
the future is really something that needs to
be controlled and not try to predict
 focus should be on those entrepreneurial
activities that are within the bounds of
one's control
 expert entrepreneurs would obviously
accomplish the results they wanted
Components of the Entrepreneurship Method
1. Identify Desired Impact
 entrepreneur must combine his curiosity,
drive and motivation to achieve something
beyond the bounds of himself
 entrepreneurship is seldom about profit
concerns and the main objective is primarily
deeper than money
 most entrepreneurs pursue what they
wanted to do, some loves being
autonomous and being able to control their
experiences at work
 have strong desire to create something new
to market
 profit motive is not sustainable because
entrepreneurship calls for hard work and
the satisfaction and desire come from deep
inside
2. Begins with Means at Hand
 current resources at hand is an important
component
 these resources need to be ready for use to
accomplish immediate action
3.
4.
5.
6.
7.
8.
 "who am I", "what do I know" and "whom
do I know" are the three essential questions
that when answered correctly and honestly
bring understanding about the resources at
hand
Describe the Idea Today
 desired impact and the means at hand
should be combined to fully describe the
idea today
 only then that an entrepreneur could start
action today with the resources he has
today.
Estimate Affordable Loss
 entrepreneurs think about the things they
are willing to lose
 once the entrepreneur is able to take
control of these things, he is also avoiding
to make fear and failure control him
Reflect and Be Honest
 entrepreneur must think of the next step to
do do sustain his venture
Take Small Action
 once every step is properly calculated and
the affordable loss is estimated, the
entrepreneur can control his risk
Network and Enjoin Others in the Journey
 practice of entrepreneurship is about
collaboration and co-creation
 sharing ones' ideas and enjoining others to
be part of the entrepreneurship bandwagon
shall also increase the entrepreneur's
resources, expland the possibilities
available as well as confirm his idea
Build and Learn from What Has Been Learned
 every entrepreneur should evaluate his
performance
 evaluating performance is improving one's
idea
 nothing is right or wrong, just making things
better
Managerial and Entrepreneurial Thinking
 Managerial Thinking
o best to apply during times of certainty
6
THE ENTREPRENEURIAL MIND
o
uses information and data as basis for
decision-making
o used primarily by big and wellestablished companies, where goals are
planned, problems are transparent and
information is reliable and reachable
 Entrepreneurial Thinking
o ability to identify opportunities in the
marketplace and discover the most
fitting ways and time to take advantage
of them
o ability to discover and pursue
theproblem-solution fits
o seeing things in a different way than the
rest of the world
o not essentially an intrinsic trait but it
can be effortlessly developed
o more like a mindset that opens eyes to
fresh learning opportunities and helps
entrepreneurs grow in their roles
Managerial Thinking
Entrepreneurial Thinking
manage and mitigate risk
valuate and embrace risk
safeguard inventions and exchange ideas and share
insights
learnings
avoid failing
fail fast and try again
work within the confines think
in
of
the
current possibilities
environment
increase the bottom line
terms
of
create value and make a
difference
Entrepreneurship Requires Deliberate Practice
 entrepreneurship method is both a mindset and
a practice
 repetition of a certain practice creates
moderate outcomes
 once a basic competence is achieved after
progressing from constant practice, a person
becomes expert of a particular field
 any basic that has been deliberately practiced
turn to be spontaneous already
 deliberate practice becomes a discipline
because it has been mastered
7