entrepreneurship

3. Provides Valuable Goods and Services

Entrepreneurship - entrepreneurship creates economic wealth by providing
goods and services to the customers
- goods and services must have a value in order to create
Entrepreneur wealth
- comes from the French word ENTREPRENDRE which means - anything of no value to anybody is definitely a waste
“to undertake” - highly satisfy the target buyers in terms of quality and price
- refers to a person who strongly advocates and correctly - entrepreneur defines value from the perspective of the
practices the concepts and principles of entrepreneurship in buyers and not only from his/her own because what is
operating and managing the self-owned entrepreneurial valuable to the entrepreneur may not be any value to the
venture consumers
- consumers tend to patronize the business and even endorse
Entrepreneurship it to others when they are satisfied with the products and
- comes from the word entrepreneur services offered by an entrepreneur
- the art of observing correct practices in managing and
operating a self-owned, wealth-creating business enterprise 4. Opening and Managing Self-Owned Enterprise
by providing goods and services that are valuable to the - must be self-owned in order to qualify as an entrepreneurial
customers endeavor
- refers to a particular field of practices or process - self-owned when the person managing its daily activities is
also its owner
Small Business - business are operating under the concept on
- a business or enterprise that correctly adopts and practices intrapreneurship
the principles of entrepreneurship - the concept of intrapreneurship may include the business
- owned by one person with a limited workforce of not more practices of franchising and buyout
than 20 persons - self-owned business is plainly about ownership
- acknowledge by government and non-government - entrepreneurship is not about the size of the business but
organizations rather about its sole ownership
- has a desire to improve lives of others
5. Risk-Taking Venture
Ordinary Small Business - risk is inherent in an entrepreneurial venture
- pertains to a business enterprise managed and operated by - risk cannot be detached from any entrepreneurial venture
an owner who is not an advocate of and does not practice the and the only way to remove it is to close the venture
concepts and principles of entrepreneurship - business risk
- self-income, everyday living, lessen financial problems
- businessperson  Entrepreneurial concepts and principles are not fixed.
They constantly changed and are highly influenced by
Ordinary Small Business the changes in the environment. The evolutionary
1. Art of correct practices  processes happening
Entrepreneurial concepts in entrepreneurship
and principles are are notmainly
fixed.
- not governed by fixed and absolute rules dueconstantly
They to the creativity
changed andand innovation
are highly born or created
influenced by the
- there is a constant change which denotes movement and from business
changes opportunities.
in the environment. TheAsevolutionary
new ideas are processes
innovations created, new
happening entrepreneurial are
in entrepreneurship ventures
mainlyopen.
due to the
- not static or stagnant  creativity and innovation
A wealth-creating venture born or created
is an from business
entrepreneurial
- entrepreneurship is dynamic opportunities. As new ideas
undertaking wherein wealth areiscreated,
created.new It is a
- entrepreneurship is closely related to creativity entrepreneurial ventures open.
business endeavor where the resources of the
- entrepreneurship is also related to the correct practices or   A enterprise
wealth-creating
Value is basically venture
have been is an fully
utilized
the opposite entrepreneurial
to maximize
of waste. Products theand
ways of carrying out entrepreneurial activities undertaking
services arewherein
investment of wealth
the entrepreneur.
considered is created.
valuable Itthey
is a business
The venture
when provide
endeavor
improveswhere
additional theofresources
the life
benefits to the of the enterprise
the entrepreneur
buyers and in terms have
users. In of
2. Wealth-creating venture been utilizedfinancial,
economic, fully to maximize
social, moral,the investment of thethe
and psychological
entrepreneurship, value is always measured from
- ordinary small businessperson equate wealth with the term entrepreneur.
aspects. The venture improves the lifeand of the
perspective of the consumers. The goods services
profit entrepreneur in terms of economic, financial, social,
- operating within the concept of wealth creation rather than become valuable when the consumers get additional
moral, andfrom
benefits psychological
using the aspects.
products or availing of the
profit generation  Value is basically the opposite of waste. Products and
services.
- wealth is defined as the abundance of money, property or
possession  services are considered valuable when they
All business, whether big or small, are provide
operating
additional benefits toofthe buyers and users. of In
- the concept of abundance is the very essence of wealth in within the concept risk-taking because
entrepreneurship, value is always measured from the
uncertainty. Nobody knows what will happen
entrepreneurial endeavor perspective
tomorrow.ofBusiness
the consumers. The be
goods and services
- wealth is created when the value of the business has risks cannot eliminated. They
become valuable when the consumers get additional
increased abundantly and the life of its owner has improved are inherent in the venture. Entrepreneurs, however,
inconsiderably face the business risks instead of avoiding them. They
find ways to minimize the effects of the business
risks.
 benefits from using the products or availing of the
services.
 All business, whether big or small, are operating within
the concept of risk-taking because of uncertainty.
Nobody knows what will happen tomorrow. Business
risks cannot be eliminated. They are inherent in the
venture. Entrepreneurs, however, face the busin
Theories on entrepreneurship
Innovation theory
- contributed by Joseph Schumpeter, an Austrian economist
and political scientist
- regards economic development as the product of structural
change or innovation
- innovation is the force that will propel the revolutionary
change
- will cause the creative destruction of the static mode of the
economy, stir the entrepreneurial activity, and encourage
competition
- it becomes the primary role of the entrepreneur to
introduce innovation in any of the following forms:
1. New product
2. New production method
3. New market
4. New supplier
5. New industry structure
Keynesian Theory
- developed by John Maynard Keynes, a British economist
- put so much emphasis on the role of the government in
entrepreneurial and economic development, most especially
when the economy was experiencing depression
- suggests that entrepreneurial activities may not be
favorable in the future unless the short-term problem of
economic disequilibrium is finally resolved through the active
participation of the government
- attributes economic growth, especially during depression, to
the government
Alfred Marshall Theory
- there are 4 factors in the production (land, labor, capital,
and organization) of goods and services in the economy, he
considered organization as the coordinating element
- regarded the entrepreneurs as the prime movers in the
organization
- entrepreneur must be able to foresee the possible changes
in the future supply and demand pattern
- organization plays the most significant role among the
different factors if production
Risk and Uncertainty-Bearing Theory
- conceptualized by Frank Hyneman Knight, an American
economist
- Knight viewed an entrepreneur as an agent of the
production process where he/she connects the producers
and the consumers
- uncertainty is an important factor in the production of
goods and services
other Theories on entrepreneurship
Weber’s sociological theory
- social cultures are the primary driving elements of
entrepreneurship
- entrepreneur is expected to perform the role of a good
constituent by executing his/her entrepreneurial activities in
line with good customs and traditions, religious beliefs, and
morals
- social cultures have significant contributions to
entrepreneurship
Kaldor’s Thechnological Theory
- was developed by Nicholas Kaldor who considered modern
technology as an essential factor in production
- entrepreneur is expected to keep abreast with modern
technology and find ways to apply the same in the
entrepreneurial endeavor
- proper application of technology will promote efficiency in
the production of goods and services
- gives importance to the advancement of technology as an
element of production
Leibentein’s Gap-Filling Theory
- the primary role of entrepreneurship in any economic
activity is to fill the existing gap
- entrepreneur is expected to possess abilities that will
connect the different markets
- he/she must extend assistance to entrepreneurial ventures
experiencing failures and deficiencies
- entrepreneurship fills the gap in any economic activity
Kirzner’s Learning-Alertness Theory
- spontaneous learning and alertness are 2 major attributes of
entrepreneurship in any given economy
- entrepreneur must be alert in recognizing entrepreneurial
opportunities and the ignorance of consumers as well
- he/she must immediately find appropriate remedy to
correct the error or wrong perception
- focuses on learning and alertness as the primary attributes
of entrepreneurship