Module 10 – Entrepreneurship
The word is derived from the French word “entreprendre” which simply means to undertake. Entrepreneurship refers to undertaking a business endeavor. It can also mean “between-taker” or “go-between”. Hisrich and Peters defined entrepreneurship as the process of creating something different with value by devoting the necessary time and effort, assuming the accompanying financial, psychic, and social risks, and receiving the resulting rewards of monetary and personal satisfaction.
Loyd Shefsky divided the word entrepreneur into three parts: Entre- means to enter,
Pre- means before;
Neur- means nerve center.
Shapero believed that it is a dynamic process of innovation and new venture creation. The entrepreneurial event focuses on the process of entrepreneurial activity and includes the following factors: * Initiative
* Relative autonomy
* Risk taking
Socio-economic benefit from Entrepreneurship
Promotes self-help and employment – the spirit and culture of self-help, self-reliance, and self sufficiency are being addressed. Mobilizes capital – it means releasing or mobilizing capital that should fire up the economy. Provides taxes to the economy – the business becomes the source of tax income by the government through sales tax, real estate, fees, and all other forms of payment to the local and national government. Empowers individuals – the possibility of wealth accumulation is enhanced and so is the economic standing of an entrepreneur. Enhances national identity and pride – the country takes pride and honor with what the entrepreneur has achieved. Enhances competitive consciousness – innovation is a catalyst to the culture of competition in which in the long run breeds healthy competition. Improves quality of life – refers to the overall effect of creating new and better products. Enhances equitable distribution of income and wealth – when entrepreneurs get successful, they get to share their wealth by providing jobs and income to others.
Who is an Entrepreneur? A school of business in the country believes that entrepreneurs are: * Opportunity finder who sees a need, assesses the situation, ventures a risk that fulfill that need, and makes a profit, * Is an innovator who creates new products and services
* Facilitates enterprise productivity, pushing sales and profits to higher levels with the application of ingenious schemes and strategies.
Orcullo mentioned in his book Contemporary Entrepreneurship that Karl Vesper has classified entrepreneurs in various forms as follows:
Solo self-employed individual – includes trades people, sales agents’ repairmen, and brokers including highly paid professionals, accountants, physicians, who operate alone or with only a few employees and perform work personally. Deal-to-Dealers – highly knowledgeable businessmen engaged in various forms of trades. Team Builders – those who go on to build larger companies using hiring and delegation. Independent innovators – those persons who hit upon ideas for better products or services then create organization to create, produce, and dispose them. Pattern multipliers – entrepreneurs, who spot an effective pattern, quite possibly originated by others, and multiply it to realize good profits. Capital aggregators – smart entrepreneurs who use their experience and expertise in pooling or syndicating a group of financiers to put together a business venture. Acquirers – those who have taken over troubled firms and straightened them out. Independent inventors – pure investors who really developed their own product or invention and take care of marketing them. Buy and Sell artist – corporate raiders and brokers who turn around, sell, and liquidate. Apparent value manipulators – those who acquire assets at a discount, represent them for a new use or market and restructure balance worksheet...