A perspective on Entrepreneurship

1. CHAPTER 1
A PERSPECTIVE ON
ENTREPRENEURSHIP

2. Entrepreneurship and Economic
Development
To achieve economic development goals,
proper management of the following
elements is necessary:
•Human resources
•Natural resources
•Capital formation
•technology

3. What is Entrepreneurship?
 It refers to the economic activity of a person
who STARTS, MANAGES, and ASSUMES the risk
of a business enterprise.
Entrepreneur
The person who undertakes entrepreneurial
activities.
The entrepreneur identifies an economic
need, considers offering a business solution,
proceeds to assemble the resources required,
and assumes the risk of either succeeding or
failing.

4. ENTREPRENEURS’S
CONCERN
PROBLEM AT HAND ENTREPRENEUR’S ACTION
1. Identifying an economic
need.
1. High income families
are not satisfied with
the services provided by
high schools in the area.
1. Establish a high
standard school for high
school students
2. Assembling resources
required.
2. Resources must be made
available.
2. Acquire funds, hire
people, construct
buildings, and the like.
3. Assuming risk. 3. Venture must be made. 3. Prepare project study,
advertise, and maintain
good relationship with
employees and
customers and among
others.

5. The Entrepreneur’s Task
Land Labor Capital
(Natural Resources) (Human Resources) (Financial Resources)
ENTREPRENEUR
PRODUCTION
PROCESS
FINISHED GOODS AND
SERVICES

6. Surviving Enterprise are responsible for
providing the following:
1. Products and services for customers
and producers;
2. Employment
3. Taxes;
4. Demand for suppliers’ product and
services; and
5. Training facilities for future
entrepreneur.

7. In the attempt to make profits, the entrepreneur
performs the following specific functions:
To supply the
necessary capital;
To organize the
production by
buying and
combining inputs
like materials and
labor;

8. In the attempt to make profits, the entrepreneur
performs the following specific functions:
To decide on the
rate of output, in
the light of his
expectation about
demand;
To bear the risk
inherent to the
venture.

9. Entrepreneurship and Innovation
INNOVATION
- may be defined as
the introduction of
a new method,
procedure, custom,
device, and among
others.

10. Innovation could be any of the following:
A new product;
A new process of production;
The substitution of a cheaper
material in an unaltered product;

11. Innovation could be any of the following:
The reorganization of production,
internal function, or distribution
arrangement leading to increased
efficiency, better support for a given
product, or lower costs;
An improvement in instruments or
methods of doing innovation.

12. Innovation may also viewed as the last stage in an
important process consisting of the following:
1.INVENTION
- which refers to the
discovery or
devising of new
products and
processes.

13. Innovation may also viewed as the last stage in an
important process consisting of the following:
2. DEVELOPMENT
- which refers to the
process by which the
ideas and principles
generated from the stage
of invention are
embodied in concrete
products and techniques.

14. Innovation may also viewed as the last stage in
an important process consisting of the following:
3. INNOVATION
- which refers to
the actual
introduction of
new products or
process.

15. NEW VENTURES AND LONG TERM
ENTERPRISE
The transition from a new venture to a
successful long-term enterprise consists of
at least four major stages. The stages are as
follows:
1. The pre start-up stage
2. The start-up stage
3. The early growth stage
4. The late growth stage

16. In the start-up stage, the following activities
are undertaken:
 Formation of the business
 Generation of the necessary capital
 Purchase of facilities and equipment
 Constructing prototype products
 Testing the market

17. REWARDS FOR SUCCESSFUL
ENTREPRENEURSHIP
FACTORS OF PRODUCTION ECONOMIC REWARD LIMITING FACTOR FOR
REWARDS RECEIVED
Land
Capital
Labor
Entrepreneur
Rent
Interest
Wages / salary
profits
Supply and demand
Industry rates /
government mandated
rates
Supply and demand
legislation
Skill of entrepreneur

18. ENTREPRENEURSHIP AND BUSINESS
SIZE
Examples of innovations are the following:
Offering business services during Sundays and
holidays.
Manufacture and sales of new products.
Selling on a deferred payment scheme