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 1 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 2 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
