Entrepreneurship Entrepreneurship

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Entrepreneurship
The Entrepreneurial Mind (Adamson University)
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Topic Title: INTRODUCTION TO ENTREPRENEURSHIP

Learning Outcomes:
At the end of this lesson, the students should be able to:
• Discuss the relevance of the course;
• Explain the key concepts of common competencies;
• Explain the core competencies in Entrepreneurship; and
• Explore job opportunities for entrepreneurship as a career.
Entrepreneurial activity responds to policies that ensure the protection of facilitate access
to capital and talent, and allow the management of risks.
Entrepreneurship has an enormous impact on the economy and in the society. Globally,
the level of entrepreneurial activity has contributed significantly to the national level of economic
growth of many countries.
It was Joseph Schumpeter, an Austrian economist, who first articulated the importance of
entrepreneurship to the economy and in the society in 1934. The increase in entrepreneurial
activities has also initiated changes in the structure of business and society.
Specifically entrepreneurship has these contributions to the economy and society:
1. Creates employment. When entrepreneurs put up their businesses, they employ people
who possess different competencies and personal values to help them operate the
enterprise.
2. Develops new markets. Entrepreneurs are opportunity-seekers, creative, and resourceful.
They seek for new buyers or customers of their product or services. They go beyond the
existing places where their products are sold and look for other people who will be
interested.
3. Introduces innovation. Entrepreneurs innovate. Innovations can be something ordinary
or technological or breakthrough. This innovation is done for the product, service or
technology towards commercialization and generates economic wealth.
4. Generates new sources of materials. Entrepreneurs are always in constant search for
better and cheaper sources of materials they need. Finding new material providers help in
the economic growth of the place.
5. Stimulates investment interest in the new business ventures being created. When
entrepreneurs engage in a new business, it stirs curiosity for other people to invest in the
business because of the benefits if offers. This new investment contributes to economic
growth.
6. Improves the quality of life. The new products and services developed by the
entrepreneur contribute to the increase in the personal benefit and convenience of people
in society.
7. Serves as role models. Entrepreneurs are people to be emulated by younger generations
in the community and society at large. The attitude, behaviour, and personality traits, like

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ENTREPRENEURSHIP
pro- activeness, opportunity recognition, risk-taking, alertness, and creativity, are some of
the characteristics that will also make them successful entrepreneurs in the future.
8. Brings social benefits to the people. Entrepreneurs pay taxes for every product or service
sold in the market. They also pay for the permits and licenses to operate their businesses.
The income derived from all these taxes by the government are then used for the people,
especially the poor to have more access to social services such as education and health, as
well as improvement in infrastructure facilities.
9. Utilizes and mobilize indigenous resources. Small and medium enterprises will always
look for cheaper and local materials to supply their needs. They also make use of idle or
unused resources to meet their needs.
10. Provides more alternatives for consumers. The stiff competition in the market for
quality and cheaper products and services requires the entrepreneurs to come up with more
products and services consumers can choose from.
KEY CONCEPTS AND COMMON COMPETENCIES
⊷ INNOVATION IN ENTREPENEURSHIP
Innovation means changing or creating more effective and systematic processes, products, and
services, which results to better productivity and performance, thus increases the successful
conduct of a business.
Innovation is the specific function of entrepreneurship. (Drucker, 1985). It is developing

good and marketable ideas that have undergone various development stages, a product of extensive
thinking, research, experience, and work.
The entrepreneur who is innovative is persevering, persistent, and dedicated to the

implementation of a concept despite many obstacles that come along the way.
Good entrepreneurs must possess the ability to see and convert opportunities into
marketable ideas, thus they become catalysts for change. They are able to combine imagination
and creative thinking with a systematic logical process ability
It involves analyzing a problem from all possible angles asking the following questions:
1. What is the problem?
2. Who are affected?
3. How does it affect them?
4. How much money is involved?
5. How can it be solved?
6. Can the market place provide the needed solution?
Types of Innovation
1. Invention – it refers to newly created products, services, or processes, which are often
novel and untried or have never been made before.
Examples:

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ENTREPRENEURSHIP
Airplanes: Wright Bothers

Light bulb: Thomas Edison
Telephone: Alexander Graham Bell
Computer: Charles Babbage
Salt Water Lamp: Aisa Mejino
2. Extension - it refers to existing products, services, or processes that are expanded. A

different application of a current idea is tried.
Examples:
McDonald: Ray Kroc
Atari: Nolan Bushnell
Holiday Inn: Kemmons Wilson
Cellphone: Martin Cooper
3. Duplication – it refers to existing products, services, or processes that ate replicated. An

entrepreneur’s own creative touch is added to improve/enhance the product.
Examples:
Personal Computers: Lucy Goldstar
Laptops: Adam Osborne
Fast Food: K Stores
Dental Services: Dentaland
4. Synthesis – it refers to existing concepts and factors that are combined into a new
formulation. It involves gathering a number of existing ideas or items and finding ways to
make these form a new use or application.
Examples:
Federal Express: Fred Smith
Home Equity Financing: Meryll Lynch
Wrist Watches: Casio
Automatic Washing Machine: Bendix Corporation
Sources of Innovation
Entrepreneurs usually make use of innovations to exploit rather than create change. The
following are internal and external areas that serve as sources of innovation:
1. Unexpected occurrence – unanticipated or unplanned event, or incident. Because it is
unexpected, it ends proving to be a major surprise to any entrepreneur which could spark new
ideas.
2. Incongruity – this happens whenever there is a gap between expectation and reality.
3. Process need – this occurs whenever there is a demand for the entrepreneur to innovate
and answer a particular need, or to answer a current consumer demand like the need to manufacture
health food, convenience food, or time saving devices.
4. Industry and market change - consumer attitudes advancement in technology,
industry growth, etc., are developments that cause continuous shifts in the market.
For example: the advent of industrial sewing machines gave rise to ready-to-wear garments.

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ENTREPRENEURSHIP
5. Demographic change – this occurs as a result on changes in population, education,

occupation, age geographic location, etc. For example, the influx of trendy fads is caused by an
increasing teenage population.
6. Change in perception – this change occurs in people’s interpretation of facts and
concepts which are intangible yet meaningful like the current fitness craze among young and
elderly people caused by the perceived need to be healthy and physically fit, has created a high
demand for health food and health facilities.
7. Knowledge-based concept – this is used as basis for the development or creation of a
new idea or invention. Inventions which are knowledge-based are the products of new thinking,
new methods and new knowledge. This kind of innovation requires the longest time between
initiation and market implementation because more testing and modifications are needed to ensure
its success.
References
THE YOUNG ENTREPRENEUR

A learning Module in Entrepreneurship Technology and Livelihood Education
By: Ines Alcantara-De Guzman, PhD

Entrepreneurship Entrepreneurship

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lOMoARcPSD|5920617

The Entrepreneurial Mind (Adamson University)

StuDocu is not sponsored or endorsed by any college or university

Topic Title: INTRODUCTION TO ENTREPRENEURSHIP

Downloaded by Marion Claire Buendia ([email protected])

Innovation is the specific function of entrepreneurship. (Drucker, 1985). It is developing

The entrepreneur who is innovative is persevering, persistent, and dedicated to the

Downloaded by Marion Claire Buendia ([email protected])

Airplanes: Wright Bothers

2. Extension - it refers to existing products, services, or processes that are expanded. A

3. Duplication – it refers to existing products, services, or processes that ate replicated. An

Downloaded by Marion Claire Buendia ([email protected])

5. Demographic change – this occurs as a result on changes in population, education,

THE YOUNG ENTREPRENEUR

By: Ines Alcantara-De Guzman, PhD

Downloaded by Marion Claire Buendia ([email protected])

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