Entrepreneurship

Richard K. Lazaro, MM
Course Instructor

Ch. 1 Nature and Relevance of

Entrepreneurship
Concept of Entrepreneurship
Entrepreneurship comes from the French word
entrepreneur "one who undertakes or manages," agent
noun from Old French entreprendre "undertake".

Ch. 1 Nature and Relevance of

Entrepreneurship
Concept of Entrepreneurship
The entrepreneur always searches for change, responds
to it, and exploits it as an opportunity. -- Peter Drucker

Ch. 1 Nature and Relevance of

Entrepreneurship
Concept of Entrepreneurship
Entrepreneurship
is one of the key engines of economic growth.
is perceived to be the symbol of business innovation,
determination, perseverance, and achievement.

Ch. 1 Nature and Relevance of

Entrepreneurship
Concept of Entrepreneurship
Entrepreneurship
SMEs are concrete manifestations of entrepreneurship.
According to UN, in developing countries, SMEs
account for 90% of all jobs, sales, and value added; as
opposed to developed countries, they account for only
50%

Ch. 1 Nature and Relevance of

Entrepreneurship
Concept of Entrepreneurship
What really is Entrepreneurship?
Having profits from bearing undertainty and risk (Knight, 1921)
Carrying out of new combinations we call enterprise-- new
products, new services, new sources of raw material, new methods of
production, new markets, new for of organization (Schumpeter,
1934)
Uncertainty-bearing, others with the coordination of productive
resources, others with the introduction of innovation, and still others
with the provision of capital (Hoselitz, 1952)

Ch. 1 Nature and Relevance of

Entrepreneurship
Concept of Entrepreneurship
What really is Entrepreneurship?
Purposeful activity to initiate and develop a profit-oriented
business (Cole, 1959)
Taking moderate risk (McClelland, 1961)
Entrepreneurship involves a kind of behavior that includes
initiative taking,organizing and recognizing social mechanism
to turn resources and situations topractical account, and the
acceptance of risks and failures. (Shapero, 1952)

Ch. 1 Nature and Relevance of

Entrepreneurship
Concept of Entrepreneurship
What really is Entrepreneurship?
Entrepreneurship, then, is behavior rather than personality trait.
And its foundation lies in concept and theory rather than in
intuition. (Drucker, 1985)
Entrepreneurship is an activity that involves the discovery,
evaluation, and exploitation of opportunities to introduce new
goods and services, ways of organizing, markets, process, and raw
materials through organizing efforts that previously had not existed
(Shane, 2003)

Ch. 1 Nature and Relevance of

Entrepreneurship
Concept of Entrepreneurship
What really is Entrepreneurship?
A dynamic process of vision, change, and creation
that requires an application of energy and passion
towards the creation and implementation of new ideas
and creative solutions. (Kuratko, 2009)

Ch. 1 Nature and Relevance of

Entrepreneurship
Concept of Entrepreneurship
What really is Entrepreneurship?
Although the definitions view entrepreneurship from different perspectives,
they contain the same elements:

innovation
oportunity seeking
resource mobilizing
encountering risks and uncertainties
economic and personal rewards

Ch. 1 Nature and Relevance of

Entrepreneurship
Concept of Entrepreneurship
Entrepreneurial countries
A lot of factors influence the friendliness of a country to
entrepeneurs, among these are: employment
regulations, bankruptcy laws, and tax policies.

Ch. 1 Nature and Relevance of

Entrepreneurship
Concept of Entrepreneurship
Top 10 Most Entrepreneurial Countries
Source: Approved Index (2015)
1. Uganda
2. Thailand
3. Brazil
4. Cameroon
5. Vietnam

6. Angola
7. Jamaica
8. Botswana
9. Chile
10. Philippines

Ch. 1 Nature and Relevance of

Entrepreneurship
Concept of Entrepreneurship
2016 Global Entrepreneurship Index
World's Most Strongest Entrepreneurial Ecosystems
1. United States (GEI ranking: 86.2)
2. Canada (79.5)
3. Australia (78.0)
4. Denmark (76.0)
5. Sweden (75.90)

6. Taiwan (69.70)
7. Iceland (68.90)
8. Switzerland (67.80)
9. United Kingdom
(67.70)
10. France (66.40)

Ch. 1 Nature and Relevance of

Entrepreneurship
Concept of Entrepreneurship
In order to compile the rankings the reports authors spoke
to over half a million participants across the 132 countries
included in the index, focusing on 14 key pillars.
These ranged from start-up skills to networking ability,
cultural support to risk capital and even product innovation.

Ch. 1 Nature and Relevance of

Entrepreneurship
Concept of Entrepreneurship
According to the reports authors, each region has a key area for focus in 2016.
Asia-Pacific: Increase export-focus among entrepreneurs
Europe: Help individuals perceive entrepreneurship opportunities
Middle East/North Africa: Reduce overall business risk
North America: Improve the visibility of entrepreneurs in their communities
South and Central America/Caribbean: Invest to develop new technology from
within the region
Sub-Saharan Africa: Support post-secondary education

Ch. 1 Nature and Relevance of

Entrepreneurship
Concept of Entrepreneurship
As was the case with last years index, the world is said to be
at 52 per cent of its entrepreneurial capacity. Which means
theres clearly a whole lot more room for the many fledgling
entrepreneurs who are currently finding their feet in business.
Source: https://thegedi.org/global-entrepreneurship-anddevelopment-index/

Ch. 1 Nature and Relevance of

Entrepreneurship
Brief History of Entrepreneurship in RP
RP is an entrepreneurial country:
99.7% of all firms are SME, employing 69% of the labor
force
47% of the 803,476 registered establishments are
SMEs owned by women

Ch. 1 Nature and Relevance of

Entrepreneurship
Brief History of Entrepreneurship in RP
RP is an entrepreneurial country: Factors that stimulate
entrepreneurship
regulatory frameworks
financial resources
support programs for entrepreneurs
business practices and social attitudes towards
entrepreneurship

Ch. 1 Nature and Relevance of

Entrepreneurship
Brief History of Entrepreneurship in RP
RP is an entrepreneurial country: SME friendly laws
RA No. 10644: An Act Promoting Job Generation and
Inclusive Growth Through the Development of Micro,
Small and Medium Enterprises, otherwise known as
the Go Negosyo Act.

Ch. 1 Nature and Relevance of

Entrepreneurship
Brief History of Entrepreneurship in RP
RP is an entrepreneurial country:
RA No. 10644 Salient features:

Establishment of Negosyo Centers in all provinces, cities and municipalities

nationwide
Establishment of a Start-up Fund for MSMEs to be sourced from the MSME
Development Fund and BMBE Fund
Technology Transfer, Production and Management Training, and Marketing
Assistance for SMEs
Recomposition of the MSME Development Council and its additional
functions

Ch. 1 Nature and Relevance of

Entrepreneurship
Brief History of Entrepreneurship in RP
RP is an entrepreneurial country:
RA No. 9178, otherwise known as the Barangay Micro
Business Enterprise (BMBE) Act of 2002 redefined the
categories. Hence, the present structure, by law, is as follows :

Micro Small Medium

Large -

up to 3,000,000
P3,000,001 - 15,000,000
- P15,000,001 - 100,000,000
above P100,000,000

Ch. 1 Nature and Relevance of

Entrepreneurship
Brief History of Entrepreneurship in RP
RP is an entrepreneurial country:
RA No. 9178 incentive and benefits:

Exemption from Taxes and Fees. All BMBEs shall be exempt

from income tax for income arising from the operations of
the enterprise.
Exemption from the Coverage of the Minimum Wage Law.
The BMBEs shall be exempt from the coverage of the
Minimum Wage Law. Provided, That all employees covered
under this Act shall be entitled to the same benefits given to

Ch. 1 Nature and Relevance of

Entrepreneurship
Brief History of Entrepreneurship in RP
RP is an entrepreneurial country:
RA No. 9178 incentive and benefits:

Credit Delivery. Upon the approval of this Act, the Land Bank
of the Philippines (LBP), the Development Bank of the
Philippines (DBP), the Small Business Guarantee and Finance
Corporation (SBGFC), and the Peoples Credit and Finance
Corporation (PCFC) shall set up a special credit window that will
service the financing needs of BMBEs registered under this Act.

Ch. 1 Nature and Relevance of

Entrepreneurship
Brief History of Entrepreneurship in RP
RP is an entrepreneurial country:
RA No. 9178 incentive and benefits:

Technology Transfer, Production and Management Training,

and Marketing Assistance. A BMBE Development Fund shall
be set up with an endowment of Three Hundred Million Pesos
(P300,000,00) from the Philippine Amusement and Gaming
Corporation (PAGCOR) and shall be administered by the SMED
Council.

Ch. 1 Nature and Relevance of

Entrepreneurship
Brief History of Entrepreneurship in RP
RP is an entrepreneurial country:
RA No. 9501 Magna Carta for Micro, Small and
Medium Enterprises (MSMEs)"

Defines the current national policy to promote, support,

strengthen, and encourage the growth and development of
MSMEs.

Ch. 1 Nature and Relevance of

Entrepreneurship
Brief History of Entrepreneurship in RP
RP is an entrepreneurial country:
RA No. 9501 Magna Carta for Micro, Small and Medium
Enterprises (MSMEs)"

Enacted by the Philippine Congress in 1991 as RA 6977,

amended by Republic Act 8289 in 1997, and further amended
by RA 9501 in 2008, the law is geared towards the
development of the Filipino entrepreneurial spirit by providing
a business environment conducive for MSMEs.

Ch. 1 Nature and Relevance of

Entrepreneurship
Brief History of Entrepreneurship in RP
For complete texts of the laws visit:
http://www.dti.gov.ph/dti/index.php/resources/smeresources/sme-laws

Ch. 1 Nature and Relevance of

Entrepreneurship
Let's perform
1. Move around your community. Record 5 micro, sme that
have been established there for at least 5 years. Find out
the effects of their presence in your community
2. Look for woman entrepreneur in your community. Ask her
about the reasons for her engaging in entrepreneurship.
3. Report in class what you have learned.