Introduction to

Entrepreneurship

Unlocking the Secrets of Wealth Creation

April 16, 2011
A. General Concepts
The ENTREPRENEUR
Our common understanding

 The boss
 The business owner

 The risk taker

 One who starts a small

business
 The resourceful guy?
No single definition
French word origin

Entependre – an
undertaker
For this course:
 Walt Disney’s definition
“….to do things and
make things which will
give pleasure to people
in new and amazing
ways. ….It is magic!

*From the lecture given by Larry Farrel at SBMA, August 7, 2002

and at UAP, October 30, 2009.
Walt Disney and
entrepreneurship

Simply amazing!
Magical
Entrepreneurship involves:

 MAGIC – soft issues

 LOGIC – hard issues
According to George Gilder –
from “The Spirit of the Enterprise”*
 “It is making the world forever new.
It is taking aggressive actions.”
According to Joseph Schumpeter -*
 “It is destroying the old order and creating
new ones.”

*From “Business as a Calling” by Michael Novak

It is about:
 NEW:
 Business ideas
 Products

 Processes

 ENTREPRENEURS
HIP
 A MINDSET
 About a forever

innovating mindset
THE THREE MASTERIES FOR
AN ENTREPRENEUR:

 Mastery of Self
 Mastery of
Opportunity
 Mastery of the
Enterprise
 Entrepreneurial
Leadership

Enterprise
Mastery Mastery
of Self of
Organization
Corporate

Corporate
Leadership
 Aspects of
Self-Mastery
Traits of an Entrepreneur
- D’s and F’s

Is it better to drop out?

Is it better to get F as a grade?
 D’s
 Dream
 Determined
 Details
 Dollar (Peso, in our case)
 Decision
 Doer
 Distribute
 Destiny
 Devotion
 Dedication
 F’s
 Founder
 Faith
 Focused
 Frugal
 Fast
 Fun
 Flexible
 Flat
 Forever Improving
Anatomy of the
Entrepreneur
The Entrepreneurial
Mind Frame

The Entrepreneurial
Heart Flame

The Entrepreneurial
Gut Game
Anatomy of the
Entrepreneur
WISDOM
 What lies
behind us,
what lies
HEART
before us, is
nothing
GUTS
compared to
what lies
HANDS
within us.
Self Analysis:

 Gifted minds
 Steely Guts
 Ability to intuit
 Courage

 Patriotic Hearts
 Hands that truly care

Do I possess all of the above?

The Entrepreneur’s
Brain

Let us do a brain
surgery…
“I have 4 brains:

left cerebral,
left limbic,
right limbic,
Right cerebral.”
The HBDI developed by Hermann yielded a
brain dominance profile

Logical
Factual
Critical
Technical
Analytical
Quantitative
Interpersonal
Kinesthetic
Emotional
Spiritual
Sensory
Feeling
 PREFERRED SUBJECTS
 Arithmetic  Arts
 Algebra
 Geometry
 Calculus  Design
 Logic  Poetry
 Science  Architecture
 Technology
 Finance A D  Marketing

B C  Social Sciences
 Programming
 Psychology
 Accounting  Dance
 Technical  Drama
Management  High-Skilled Sports
 Production
 People-Management
 PREFERRED PROFESSIONS
 Lawyers  Entrepreneurs
 Engineers  Explorers
 Computer Systems Analysts  Artists
 Financial Analysts  Playwrights
 Technicians  Scientists in R&D
 Advertising
 Physicians
A D  Composers
 Statisticians  Jazz Musicians
 Bureaucrats  Guidance Counselors
 Administrators B C
 Public Relations
 Bookkeepers
 Planners-Programmers  Nurses
 Elementary Teachers  Social Workers
 Policemen  Entertainers
 Cashiers  HRD
 Production Supervisors  Salesmen
 Maintenance People  Priests
 Classical Musicians
 Cerebral

Left mode Right mode

CEO’s
male or female
Limbic
 Cerebral

Left mode Right mode

Entrepreneurs

Limbic
B. Forms of
Entrepreneurship

1. Social Entrepreneurship
2. Business Entrepreneurship
3. Techno Entrepreneurship
1. Social
Entrepreneurship
1. Social Business Mix

Social Profit
NGO NGO Enterprise Business Maximization
(non-profit) (for-profit) Enterprise Business
(PMB)
Social CSR Business
Business Enterprise
Social Entrepreneurship

 “Any creative and innovative

solution applied to solve social
problems” (Mohammad Yunus,
2007)
 It involves social mission
 Profit and/or entrepreneurial

processes
Banker to the poor
Social Entrepreneurship
 “Search for approaches to move
poor people out of poverty beyond
welfare-based safety nets.”
 No more charities
 Sustainability

 Profits for non profits

Social Entrepreneurship
 CSR – corporate social
responsibility
 CSV – corporate shared value
 Human Nature
Social Business
 The triple bottom line
 PEOPLE
 PROFIT

 PLANET

 BOP – Bottom of the Pyramid

BOP – Bottom of Pyramid

A-B 9%
Above poverty
C 20% threshold

D-E 31%
Living on less
than $2 per day

Living on less
F 40% than $1 per day
 Mother
Teresa did
what no other
person has
done before –
to take care of
the poor,
destitute and
lepers
 Lance Armstrong
 7 times Tour de
France champion
 His real victory is
with the LAF where
he helps hundreds
of cancer victims
 Sir Edmund Hillary was
first to conquer Mt. Everest
 Sir Edmund Hillary came back to
Nepal and helped the Sherpas
improve their living conditions.
Mohammad Yunus
 Taught Developmental Economics at
the University of Chitagoong in
Bangladesh.
 Economics, right at the outskirt of the
University, poverty was everywhere.
 He found out that all that was needed
by the poor was a loan of 27 chakas.
That’s how the Grameen Bank started.
Why are they
entrepreneurs?

 They had little or

no resources at all
but they survived
and achieved what
they wanted in life
2. Business
Entrepreneurship

Business for profit

Business Entrepreneurship

 It’s about the study of systems,

structure, and staffing to make a
large corporation stay competitive,
innovative, and profitable on a
sustainable basis.
The business cycle according to Larry
Farrel – int’l expert on entrepreneurship

Growth Decline

Start Survival /
Failure

ENTREPRENEURIAL MANAGERIAL
No longer excellent!...

 In 1983, there was the book In

Search of Excellence by Tom
Peters and Waterman. It sold 6
million copies. Then...

 Something went wrong...

 33% of the “Excellent” Companies
vanished
 Too big to fail companies

 Where are they now?:

Washington Mutual
Bear Stearns
Pacific Bank
Banco Filipino
Vanishing giants

Dinosaurs of the corporate

world
ENTREPRENEURIAL
COMPANIES
 Keeping the Sense of
Mission alive as you grow
 Re-instilling
customer/product vision in
every employee
 Fostering high-speed
innovation
 Making self-inspired behavior
the organization standard
 BUSINESS
ENTREPRENEURSHIP
Entrepreneur (Self)

IDEA REALITY
TIME

Resources Opportunity
 Growth

Differentiation Strategic direction

Three Competencies of the
Complete Entrepreneur
ORIGINATOR

or

ins
at

pi r
ov
inn

er
OPERATOR implementor ORGANIZER
Compelling Reasons
Why We Need
Entrepreneurs
 90% of the world’s jobs are created by
entrepreneurs
 Source of new products and innovation
 In the third-world countries, the entrepreneurs
keep the sagging economies alive
 It’s the entrepreneurs – not the central bank –
that keep the economy moving
 Finally...
...in the Philippines
 It’s not GMA nor the government
that was responsible for sheltering
the Philippines against bad times.
 GUESS WHO?!
 In the GEM report of 2006-2007, RP is
No. 2 in the world for entrepreneurial
activity.
 Peru is No. 1
RP is a HOTBED OF
ENTREPRENEURSHIP!
 4 out of 10 adult Filipinos are into
business
 Highest in Northern Luzon – 54%

 Lowest in Metro Manila – 30%

 In the early stages, it is highest in

Mindanao, at 73%
Entrepreneurship in the Philippines:
Issues from a Global Perspective
Other trivia:
 Battle of the sexes:
 51% of all businesses
are started by women
 55% of all businesses

are run by men

 Of the nascent

businesses, 60% are

run by women
Entrepreneurial “ION”
(Process)
InspiratION (idea)

AmbitION PerspiratION (past jobs)

PassION
+ RecreatION (hobbies) =
Idea FruitION

FrustratION (what pisses you off)

Enterprise
CreatION

Sea of Opportunity
Is Entrepreneurship easy?

 We choose to go to the moon in this decade

and do all the other things to get there, not
because they are easy but because they are
hard, because that goal will serve to
measure the best of our energies and skills,
because that challenge is one we are willing
to accept and we are unwilling to postpone,
and which we intend to win and others too.

-- JFK, 1962
So you want to be a billionaire

Put your name here:

__________________________________
THE NEXT MILLIONAIRE / WINNER