Module #1 Entrepreneurial

Management
HI everyone , good morning.
I am your subject professor
in Entrepreneurial
Management , a graduate of
Bachelor of Science in
Business Administration from
Philippine School of
Business Administration-
Manila, and with a Master in
Management degree from
University of Rizal System-
Morong.
I worked in the industry for
over 30 years and I am with
URS since 2016.

My first name can be easilly

remembered because we
are all Marketista. We are all
aware of the Marketing
model which is
 .

I am Mrs Aida R.
Resurreccion Assistant Professor
1, your subject professor
 COURSE OBJECTIVES
This course aims to teach the approach
entrepreneur use in identifying opportunity and
1 creating new ventures; analytic skills that are
needed to practice this approach; and the
background knowledge and managerial skills that are
necessary for dealing with the recurring issues
involved in starting, growing and harnessing the
value of new ventures.
 Specific Objectives:
At the end of the semester, the student should be able to:

1. Explain the different 3. Generate entrepreneurial

entrepreneurial management ideas and innovations and
principles and practices; evaluate them in the context
2. Recognize the significant of domestic and global
contributions of SMEs to the market;
economic growth and 4. Develop a business plan of
development of the country in a chosen product and present
general; the same to an evaluation
panel
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 COURSE OBJECTIVES

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 COURSE OBJECTIVES

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Thank you

Any questions?
You can find me at:
▸ [email protected]
 COURSE OBJECTIVES

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Unit 1
Origin and Nature of Entrepreneurship
Module 1
▸
Entrepreneurial
Management
Defined
MODULE OBJECTIVES:
▸
▸ At the end of this module, each student will be
able to:
▸ 1. Define entrepreneurial management
▸ 2. Differentiate entrepreneur vs entrepreneurship
▸ 3. Examine the challenges associated with
defining the concepts of entrepreneur and
entrepreneurship
Introduction
▸ Entrepreneurship is a way of life. Being
entrepreneurial means being able to identify, start
and maintain viable and profitable business,
particularly a small enterprise. People spend
most of their lives working for someone else.
Some people eventually rise to positions of
wealth and power, while the rest languish in
unchallenging and low-paying jobs. On the other
hand, there are a select few who strike it out on
their own rather than work for others. They put
up their own enterprise.
ENTREPRENEURIAL MANAGEMENT DEFINED
▸ According to Robert Price of Global
Entrepreneurship Institute, entrepreneurial
management is the practice of using
entrepreneurial knowledge to increase
effectiveness of startup businesses.
▸ Entrepreneurial knowledge is restricted to
the concepts, skills, and mindset that
individual business owners must employ to
start and grow their business.
Entrepreneurial Management
▸ Entrepreneurial Management is
a discipline that deals with
ventures, innovation, strategies
which will take idea into market,
and to make venture a successful
business
Entrepreneurial Management is concerned about vital management
issues for startup entrepreneurs:
▸ What is this startup about? (mission and
values statement)
▸ Where should it go? (goals and objectives)
▸ How will it get there? (growth strategy)
▸ What does it need to get there? (people
and resources)
Entrepreneurial Management is concerned about vital management issues for
startup entrepreneurs:

▸ What structure is best? (organizational capabilities)

▸ How much money does it need and when?
(financing strategy)
▸ How will it recognize the final destination? (vision
of success)
▸ How much money does it need and when?
(financing strategy)
▸ How will it recognize the final destination? (vision
of success)
Entrepreneur Vs Management
▸ 1. An entrepreneur is focused on new business
venture whereas the main focus of management
is to manage the ongoing operation.
▸ 2. Ownership of an organization stays with
entrepreneur whereas management is an employee
of the organization. ...
▸ 3. An entrepreneur is risk taker where
management doesn't take any risk.
ENTREPRENEUR and ENTREPRENEURSHIP

▸ ENTREPRENEUR can be described as “one

who creates a new business in the face of risk and
uncertainty for the purpose of achieving profit and
growth by identifying significant opportunities
and assembling the necessary resources to
capitalize on them” (Zimmerer & Scarborough,
2008, p. 5).
▸ An entrepreneur is “one who organizes,
manages, and assumes the risks of a business or
enterprise”.
ENTREPRENEURSHIP
▸ can be defined as a field of business that seeks to
understand how opportunities to create something
new (e.g., new products or services, new markets,
new production processes or raw materials, new
ways of organizing existing technologies) arise
and are discovered or created by specific persons,
who then use various means to exploit or develop
them, thus producing a wide range of effects.
ENTREPRENEURSHIP

▸ A concise definition of entrepreneurship “is

that it is the process of pursuing opportunities
without limitation by resources currently in
hand” and “the process of doing something
new and something different for the purpose
of creating wealth for the individual and
adding value to society”
ENTREPRENEURSHIP according to Prof N. Left
▸ Is the capacity for innovation, investment and
expansion in new markets, products and techniques.

▸ This definition implies that an enterprise is at work

whenever an individual takes the risks and invest
resources to make something unique or something
new, designs a new way of making something that
already exists, or creates new markets.
ENTREPRENEURSHIP according to Professor Hirsh

▸ 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”.
ENTREPRENEURSHIP
▸ Entrepreneurship is not only applicable to
business enterprise. It can also be done in
schools, hospitals and other social services
institutions. Entrepreneurship has special or
extra-ordinary features such as the creation of
something new or something different. In
short, it is innovation which distinguishes
entrepreneurship from other activities.
Innovation.
▸ This refer to new or different ways of doing
things, like technology, marketing, human
relations, management, and so forth.
▸ When individual creates product, it is
innovation. When he sells his product in a
different approach, it is also innovation.
▸ Moreover, entrepreneurs use businesses to
create products and services that solve problems
in innovative ways.
Entrepreneurship and Innovation

▸ Jeremy Bentham (1748-1832), from the

English School of thought, considered
entrepreneurs to be innovators. They
“depart from routine, discover new
markets, find new sources of supply,
improve existing products and lower the
costs of production” (Chell, 2008).
Schumpeter (1934) viewed innovation as arising from new combinations of materials and
forces. He provided the following five cases of new combinations.

▸ 1. The introduction of a new good – that is one

with which consumers are not yet familiar – or of a
new quality of good.
▸ 2. The carrying out of the new organization of any
industry, like the creation of a monopoly position …
or the breaking up of a monopoly position
(Schumpeter, 1934, p. 66).
Schumpeter (1934) viewed innovation as arising from new combinations of materials and forces.
He provided the following five cases of new combinations.

▸ 3. The opening of a new market that is a market

into which the particular branch of manufacture
of the country in question has not previously
entered, whether or not this market has existed
before.
▸ 4. The conquest of a new source of supply of
raw materials or half-manufactured goods,
again irrespective of whether this source already
exists or whether it has first to be created.
Schumpeter (1934) viewed innovation as arising from new combinations of materials and forces. He
provided the following five cases of new combinations.

▸ 5. The introduction of a new method of

production, that is one not yet tested by
experience in the branch of manufacture
concerned, which need by no means be
founded upon a discovery scientifically new,
and can also exist in a new way of handling a
commodity commercially.
The Earliest Entrepreneurship
▸ The function, if not the name, of the entrepreneur is
probably as old as the institutions of barter and
exchange. But only after economic markets became
an intrusive element of society did the concept take
on pivotal importance. Many economists have
recognized the pivotal role of the entrepreneur in a
market economy. Yet despite his central importance
in economic activity, the entrepreneur has been a
shadowy and elusive figure in the history of
economic theory (Hebert & Link, 2009, p. 1).
The Earliest Entrepreneurship

▸ Historically those who acted similarly to the ways we

associate with modern day entrepreneurs – namely those
who strategically assume risks to seek economic (or
other) gains – were military leaders, royalty, or
merchants. Military leaders planned their campaigns and
battles while assuming significant risks, but by doing so
they also stood to gain economic benefits if their
strategies were successful. Merchants, like Marco Polo
who sailed out of Venice in the late 1200s to search for a
trade route to the Orient, also assumed substantial risks in
the hope of becoming wealthy (Hebert & Link, 2009).
Portrait of an Entrepreneur
▸ 1. Sharp eyes- for seeking out opportunities
▸ 2.  Wise eyes- for establishing a vision and setting goals
▸ 3.  Wrinkles- for smiling during the fun times
▸ 4.  Brain- for generating creative, innovative ideas
▸ 5.  Ear- for listening to the advice of those with knowledge
and experience
▸ 6.  Glands- for adrenaline: for the rush / for sweat: during
hard work
▸ 7.  Neck- for sticking out and taking calculated risks
Portrait of an Entrepreneur

▸ 8. Arms- for hugging members of the team that will

determine your success
▸ 9.  Fingers-for counting the positive learning
opportunities from any mistakes, failures
▸ 10. Heart- for the passion, commitment and perseverance
to stick with it
▸ 11.  Knee- for bending and praying
▸ 12.  Strong foot- for kicking butt when needed
▸ 13.  Fleet feet- for moving ahead, keeping ahead and
walking paths of adventure
▸ 14. Strong legs- for leaping over the many barriers and

obstacles you will encounter

Portrait of an Entrepreneur

▸ 15.  Deep pockets- to cover the unexpected

▸ 16.  Hands- for shifting gears when necessary
▸ 17.  Backbone- for the confidence to believe in one's self and
to move ahead
▸ 18.  Mouth- for effective communication and being able to
sell an idea
▸ 19.  Nose- for smelling signs of trouble and forseeing
possible problems
▸ 20.  Good ear- for keeping to the ground and sensing change
and opportunity
SELF ASSESSMENT QUESTIONS (SAQ)
▸ ACTIVITY
▸ 1. Define entrepreneurial management.
▸ 2. Differentiate the following:
▸ a. entrepreneur and entrepreneurship
▸ b. entrepreneur vs management
▸ c. entrepreneurship and innovation
▸ 3. Can innovation and entrepreneurship protect the national economy from the forecasted
slowdown in economic growth? Explain briefly.
▸ 4. What are the challenges associated with defining the concepts of entrepreneur and
entrepreneurship?
▸ 5. Explain the statement, “Entrepreneurship is more than a word, it is a mission”.
Readings

1. Read the book of Robert Kiyosaki-Rich Dad Poor

Dadhttps://www.google.com/search?
q=rich+dad+poor+dad+robert+kiyosaki&source=lmns&bih=608&biw=1350&rlz=1C1CH
BD_enPH864PH864&hl=en-
GB&sa=X&ved=2ahUKEwiPmKe8n8DrAhUq4XMBHeXCAVoQ_AUoAHoECAEQAA

Enumerate Lessons Learned from the Rich dad and

The Poor dad (10 each)
2. What are the alphabet of Entrepreneur- Explain
each briefly
Portrait of an Entrepreneur

▸ Briefly explain the 20

portraits of an
Entrepreneur
Assessment
A
Tool
▸ Rubrics
Criteria 4Exemplary 3Excellent/Meets 2AcceptablePro 1UnacceptableNee
Exceeds ExpectationGoo gressingFair ds Improvement
ExpectationSup d
erior

Comprehensibility Very Much Very Main ideas are Not comprehensible

Comprehensible Comprehensible comprehensible at all

Content Coverage Fully developed Adequately Partially Minimally developed

developed developed