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Topics: Entrepreneurship, Joseph Schumpeter, Entrepreneur Pages: 5 (1101 words) Published: August 26, 2013
CHAPTER 1 – AN INTRODUCTION TO ENTREPRENEURSHIP: Origin and Nature TOPICS
- Evolution of Entrepreneurship- Importance of Entrepreneurship - Entrepreneurship Defined- Entrepreneurship in the Philippines - Entrepreneurship is a process and approach- The Government and Entrepreneurship - Socio-Economic benefits from Entrepreneurship

ENTREPRENEURSHIP DEFINED
“Entrepreneurship is more than a word. It is a mission. We must perceive opportunities inherent in change; we must create a desire for pursuing the opportunities that arise; and we must create an environment in which success is possible and the consequences of failure are tolerable.” –Professor Hisrich

The word entrepreneur originates for the French word entreprende which means “to undertake”, in business context – to start a business.

ENTREPRENEURSHIP

Is a process through which individuals identify opportunities, allocate resources and create value.

is the practice of starting new businesses or developing new products or services.

Is the utilization of both material and manpower resources with the end purpose of generating income or profit.

EVOLUTION OF ENTREPRENEURSHIP
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DEVELOPMENT OF ENTREPRENEURSHIP THEORY AND TERM ENTREPRENEUR

Stems from French| means between-taker or go between|
Middle Ages| Actor (war like action) and person in-charge of large scale production projects| 17th Century| Person bearing risks of profit (loss) in a fixed contract with the government| 1725| Richard Cantillon – person bearing risks is different from one supplying capital | 1797| Beaudeau –person takoing risks, planning, organizing and owning| 1803| Jean Baptiste Say – separated profits of entrepreneur from profits of capital| 1876| Francis Walker – distinguished those who supplied funds and received interest and those who received profit from managerial capabilities| 1934| Joseph Schumpeter – entrepreneur is an innovator and develops untried technology| 1961| David McClelland – entrepreneur is energetic, moderate risk taker.| 1964| Peter Drucker – entrepreneur maximizes opportunities| 1975| Albert Shapero – entrepreneur takes initiative, organizes some socio-economic mechanisms and accepts risks for failure.| 1980| Karl Vesper – entrepreneur seen differently by economics, psychologists, businesspersons and politicians| 1983| Gifford Pinchot – Intrapreneur is an entrepreneur within an already established organization| 1985| Robert Hisrich – Entrepreneurship is the process of creating something different with value by devoting the necessary time and effort, assuming the accompanying financial, psychological and social risks and receiving the resulting rewards of monetary and personal satisfaction.|

SCHUMPETER’S VIEW OF ENTREPRENEURSHIP

Austrian economist Joseph Schumpeter’s definition of entrepreneurship placed an emphasis on innovation, such as: *
* New products
* New production methods

* New markets
* New forms of organization

ENTREPRENEURSHIP IS A PROCCESS AND APPROACH
Entrepreneurship is also described as a dynamic process and an approach. As an approach, the entrepreneur considers the business opportunity as a chance how to solve the problem rather than solving the problem itself.

TWO APPROACHES TO PROBLEM SOLVING

ADAPTER| INNOVATOR|
- Employs a discipline, precise methodical approach| - Approaches tasks from unusual angles| * Is concerned with problem solving, rather than finding problems| * Discovers problems and avenue of solution| * Attempts to refine current practices| * Questions basic assumptions related to current practices| * Tend to be means-oriented| * Has little regard for means, is more interested in ends| * Is capable of extended detail work| * Has little tolerance for routine work| * Is sensitive to group cohesion and cooperation| * Has...
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