Entrepreneurship: Richard K. Lazaro, MM

Entrepreneurship
Richard K. Lazaro, MM
Why do we have Entrepreneurship in

SHS?
President Benigno Aquino III signed Republic Act 10679 or the

Youth Entrepreneur Act promoting entrepreneurship and financial
education among young Filipinos on August 27, 2015.
The law mandates the Department of Education (DepEd), the
Commission on Higher Education (CHED) and the Technical Education
and Skills Development Authority (TESDA) to establish the promotion
of programs on entrepreneurship and financial literacy.
DepEd shall also ensure that the K to 12 curriculum shall be
supported by such programs.

SHS?
As directed, entrepreneurship would be part of the senior

high school curriculum no matter what track senior high
school students chose.
Entrepreneurship would be "contextualized" depending on
the student's track.
This was to show the students that, whatever path they chose, they
would need organizational and interpersonal skills; problem-solving
and decision-making skills; time and money management skills;
leadership skills; public speaking skills; teamwork; and socialpsychological development.

SHS?
For practical reasons:
We live in increasingly unpredictable times where the
uncertainties are beginning to far outweigh the certainties
due to economic constraints and global competition.
The traditional notion of finding and retaining a single stable
job for the majority of your working life is a thing of the past.
People are being asked to reinvent themselves every 5 years.

Uncertainty and rapid change rule the day.

SHS?
Traditionally entrepreneurship has been associated with

launching new businesses.
However, many individuals and institutions are beginning to think of

entrepreneurship as a vital life skill that extends far beyond the ability
to launch a venture, a life skill that prepares individuals to deal with an
ambiguous and uncertain future.
Entrepreneurship embodies methods that enables people to

manage change, adjust to new conditions, and to take control of
actualizing personal goals and aspirations.

SHS?
Its also a vehicle for developing a set of skillscreative thinking,

leadership, decision-making, social networking, to name a fewthat
taken together, enable individuals to distinguish themselves in a variety
of traditional and nontraditional work and life paths.
To be entrepreneurial is to be inspired and capable of creating
opportunities for oneself.
More: https://techcrunch.com/2012/06/30/why-students-should-gainentrepreneurship-experience-before-graduating/
Ch. 1 Nature and Relevance of

Entrepreneurship
At the end of this session, you should be able to:
1.
2.
3.
Explain the concept of entrepreneurship;

Discuss the evolution of entrepreneurship in the Philippines; and
Explain and apply the entrepreneurial process.

Entrepreneurship
Concept of Entrepreneurship
Entrepreneurship comes from the French word

entrepreneur "one who undertakes or manages,"
agent noun from Old French entreprendre "undertake".

Entrepreneurship
What really is Entrepreneurship?
Having profits from bearing uncertainty and risk (Knight, 1921)

Carrying out of new combinations we call enterprise-- new products,
new services, new sources of raw material, new methods of production,
new markets, new form of organization (Schumpeter, 1934)
Uncertainty-bearing, others with the coordination of productive
resources, others with the introduction of innovation, and still others with
the provision of capital (Hoselitz, 1952)

Entrepreneurship

Purposeful activity to initiate and develop a profit-oriented business
(Cole, 1959)
Taking moderate risk (McClelland, 1961)
Entrepreneurship involves a kind of behavior that includes initiative
taking,organizing and recognizing social mechanism to turn resources
and situations to practical account, and the acceptance of risks and
failures. (Shapero, 1952)

Entrepreneurship
Entrepreneurship, then, is behavior rather than personality trait. And its

foundation lies in concept and theory rather than in intuition. (Drucker, 1985)
Entrepreneurship is an activity that involves the discovery, evaluation, and

exploitation of opportunities to introduce new goods and services, ways of
organizing, markets, process, and raw materials through organizing efforts that
previously had not existed (Shane, 2003)

Entrepreneurship
A dynamic process of vision, change, and creation that requires an

application of energy and passion towards the creation and
implementation of new ideas and creative solutions. (Kuratko, 2009)

Entrepreneurship
Although the definitions varies from different perspectives, they contain the
same elements:
innovation
opportunity seeking
resource mobilizing
encountering risks and uncertainties
economic and personal rewards

Entrepreneurship
There is no universal definition of entrepreneurship. However, Howard
Stevenson of Harvard Business School defines it nicely:
Entrepreneurship is the pursuit of opportunity without regard to
resources currently controlled.
It not only gives insight into why people like you are so drawn to the idea of starting
and building something, it will also improve the likelihood that you'll be successful.
SO ARE YOU READY TO GET RICH?

Entrepreneurship

Entrepreneurship
In 1995, a computer programmer started
auctioning off stuff on his personal website.
AuctionWeb, as it was then known, was
really just a personal project, but, when the
amount of web traffic made it necessary to
upgrade to a business Internet account,
Pierre Omidyar had to start charging people
fees. He actually hired his first employee to
handle all the payment checks.

Entrepreneurship
A trip to Milan gave a young marketer
working for a Seattle coffee bean roaster
an idea for upscale espresso cafes like
they have all over Italy. His employer
had no interest in owning coffee shops
but agreed to finance Howard Schultzs
endeavor. They even sold him their
brand name, Starbucks.

Entrepreneurship
With a net worth of US$85 million,
Edgar Injap Sia II is the 40th
richest in the country and the
youngest at age 34. Sia earned his
fortune when he sold 70 percent of
his famous restaurant to main
competitor Jollibee Foods Corp. for
US$68 million (roughly P2.9 billion).
Mang Inasal emerged in Iloilo City in
2003 with an initial capitalization of
more or less P1 million. It was
conceptualized to serve typical
Filipino street food inasal or
barbecue in a restaurant setting.

Entrepreneurship
Can you get establlish a venture and get rich even while
studying?
The story of one LU student
Let's gauge your potential!

Entrepreneurship
In sheet of paper, answer the following questions:
1. What are the common traits exhibited by the owners of eBay,

2.
Starbucks, and Mang Inasal that contributed to their success?

In what way did these examples inspire you?

Entrepreneurship
The world is full of infinite possibilities and countless opportunities, but

your life and career are finite, meaning you have limited time to find
what youre searching for and make your mark on the world.
This is your time. Its limited so dont waste it. Find something you like
to do and just do it. Thats how real entrepreneurs always start.

Entrepreneurship
Entrepreneurship
is one of the key engines of economic growth.
is perceived to be the symbol of business innovation, determination,
perseverance, and achievement.

Entrepreneurship
Entrepreneurship
SMEs are concrete manifestations of entrepreneurship.
According to UN, in developing countries, SMEs account for 90% of all
jobs, sales, and value added; as opposed to developed countries, they
account for only 50%

Entrepreneurship
Evolution of Entrepreneurship in RP
Entrepreneurship existed since the interaction of the early

Filipinos with foreign traders from Malaysia, Indonesia, and
China
started business transactions through barter system
countries then moved to money economy

Entrepreneurship
When Spain, US, and Japan colonized RP, they changed the
structure of society, economy, education, and the political
system
After independence, the Government realized the
importance of entrepreneurship to individuals, society, and
the country

Entrepreneurship
1935: SMEs became the embodiment of entrepreneurship in

the country with the development regulatory framework and
policies started
1970s: Intensification of entrepreneurship development; SME
sector was given emphasis in Philippine Development Plan
(1972-1976)

Entrepreneurship
1987: The Constitution reinforced the commitment for the

development of the private sector
1991: Magna Carta for Small Enterprises
1995: RA 7882, the Act Providing Assistance to Women,
recognizes the role of women in development and
entrepreneurship
Steps in the Entrepreneurial Process

1.
2.
3.
4.
5.
Discovery
Concept Development
Resourcing
Actualization
Harvesting

1. Discovery: The stage in which the
entrepreneur generates ideas,
recognizes opportunities, and studies
the market
Idea
Innovation
Opportunity
Discovery
Consider your hobbies or

skills
Conduct Surveys and

questionnaires test the market
Consider consumer needs and

wants
Study demographics/
Market research

2. Concept Development:
Develop a business plan: a detailed proposal describing the business idea
Objective
Executive summary
Mission Statement

3. Resourcing: The stage in which the
entrepreneur identifies and acquires the
financial, human, and capital resources needed
for the venture startup, etc
Start-up resources
Resourcing
Apply for loans, grants
and assistance
Identify potential
investors
Hire
employees

4. Actualization: The stage in which the
entrepreneur operates the business and
utilizes resources to achieve its
goals/objectives.
$$ Grand Opening $$
Day-to-Day Operations

5. Harvesting: The stage in which the
entrepreneur decides on businesss future
growth/ development, or demise
What is your 5-year or 10-year plan?
Consider adding locations or providing different
products/services
Will you go public?
Exercise
Build the highest possible structure in 7 minutes using only
these materials...
The structure captured on a photograph is the winner.
Process
To learn about working as a team and analyze their effectiveness
as a team
To discuss the role of contribution and leadership.
To understand how planning pays off those who took time to
plan tend to come up with better structures at the end than
those that jumped into building structures right away
To see how different teams interpret the same instructions and
the difference out of the box thinking and approaches make
(i.e. entrepreneurial or conformist)
To recognize that stimulus rich environments are much more
conducive to creativity than incentives
Assignment
Let's perform:
1. Move around your community. Record 5 SMEs that have been

2.
3.
established there for at least 5 years. Find out the effects of their
presence in your community
Look for woman entrepreneur in your community. Ask her about
the reasons for her engaging in entrepreneurship.
Report in class what you have learned.
Next Session
We will continue the discussion on the following topics:
Global Development of Entrepreneurship

Relevance of Entrepreneurship and Entrepreneurs in
Economic Development and Society

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Entrepreneurship

Why do we have Entrepreneurship in

President Benigno Aquino III signed Republic Act 10679 or the

Why do we have Entrepreneurship in

As directed, entrepreneurship would be part of the senior

Why do we have Entrepreneurship in

People are being asked to reinvent themselves every 5 years.

Why do we have Entrepreneurship in

Traditionally entrepreneurship has been associated with

However, many individuals and institutions are beginning to think of

Entrepreneurship embodies methods that enables people to

Why do we have Entrepreneurship in

Its also a vehicle for developing a set of skillscreative thinking,

Ch. 1 Nature and Relevance of

Explain the concept of entrepreneurship;

Ch. 1 Nature and Relevance of

Entrepreneurship comes from the French word

Ch. 1 Nature and Relevance of

Having profits from bearing uncertainty and risk (Knight, 1921)

Ch. 1 Nature and Relevance of

What really is Entrepreneurship?

Ch. 1 Nature and Relevance of

Entrepreneurship, then, is behavior rather than personality trait. And its

Entrepreneurship is an activity that involves the discovery, evaluation, and

Ch. 1 Nature and Relevance of

A dynamic process of vision, change, and creation that requires an

Ch. 1 Nature and Relevance of

Ch. 1 Nature and Relevance of

Ch. 1 Nature and Relevance of

Ch. 1 Nature and Relevance of

Ch. 1 Nature and Relevance of

Ch. 1 Nature and Relevance of

Ch. 1 Nature and Relevance of

Let's gauge your potential!

Ch. 1 Nature and Relevance of

1. What are the common traits exhibited by the owners of eBay,

Starbucks, and Mang Inasal that contributed to their success?

Ch. 1 Nature and Relevance of

The world is full of infinite possibilities and countless opportunities, but

Ch. 1 Nature and Relevance of

Ch. 1 Nature and Relevance of

Ch. 1 Nature and Relevance of

Entrepreneurship existed since the interaction of the early

Ch. 1 Nature and Relevance of

Ch. 1 Nature and Relevance of

1935: SMEs became the embodiment of entrepreneurship in

Ch. 1 Nature and Relevance of

1987: The Constitution reinforced the commitment for the

Steps in the Entrepreneurial Process

Steps in the Entrepreneurial Process

Consider your hobbies or

Conduct Surveys and

Consider consumer needs and

Steps in the Entrepreneurial Process

Develop a business plan: a detailed proposal describing the business idea

Steps in the Entrepreneurial Process

Steps in the Entrepreneurial Process

Steps in the Entrepreneurial Process