EVOLUTION OF ENTREPRENEURSHIP
• entrepreneur or entrepreneurship originated in and actions associated with perceiving opportunities and
Europe sometime in the Middle Ages
• entreprende - “to undertake.”
Contemporary Views on Entrepreneurship
Entre – enter Pre – before Neur - nerve center
Entrepreneur- means “between-taker”/ “go-between”.
- -a person who is able to look at the environment,
identify opportunities to improve the environment, marshal
resources, and implement action to maximize those
opportunities
A. Economist- one who brings resources, labor, materials
and other assets into combinations that make their value
greater than before, and also one who introduces changes,
innovation, and a new order.
B. Psychologist- a person typically driven by certain forces:
need to obtain or attain something, to experiment, to
accomplish, or perhaps to escape from authority of others.
C. Businessman- an aggressive competitor, whereas to
another businessman, the entrepreneur may be an ally.
D. Capitalist Philosopher- creates wealth for others as well,
who finds better ways to utilize resources, and reduce waste,
and who produces jobs others are glad to get.
Entrepreneurship
- refers to undertaking a business endeavor though no
specific reference as to whether it meant undertaking the
business for himself or doing it for someone else.
- is “provision of services.”
- is doing things that are not generally done in the
ordinary course of business routine
- is the ability to create and build a vision from
practically nothing
- is 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
- being engaged in small and medium enterprises or
establishing and managing a business of his own.
Entrepreneurship is a process and approach
The entrepreneur considers the business opportunity
as a chance to solve the problem rather than solving the problem
itself.
Entrepreneurship is a dynamic process of innovation
and new-venture creation through five major dimensions.
5 major dimensions of Entrep:
1. individuals 4. process
2. organization 5. institutions
3. environment
Entrepreneurial Activity Factors:
a. initiative b. organization
Kinds of Behavior in Entrepreneurship
• Initiative taking
• The organizing and recognizing of social/ economic
mechanisms to turn resources and situations to practical
account.
• The acceptance of risks and failure
Entrepreneurial process involves all the functions, activities,
creating organizations to pursue them.
The Challenge to Entrepreneurs
The third millennium is mainly characterized by
globalized trading system and the predominance of the
revolutionary information technologies. Filipino entrepreneur
used to develop and market his products locally, he is now faced
with local competition not anymore with Filipino entrepreneurs
themselves, but also with imported products and services now
available in the local market.
Entrepreneurship and innovation are important tools
for productivity and competitiveness vis-à-vis the large business
organizations and the foreign competitors in general. By
exploiting the benefits of the so-called cyber space or
information highway and the various softwares available in the
market, one can easily network with the foreign markets.
HOW DOES AN ECONOMY GROW: The Philippine Economy
1. The national economy composition:
a. business enterprises
b. household
c. government
2. There are economic freedoms:
a. free competition
b. free choice of investments
c. prices (demand and supply)
3. The main determinants of economic growth:
a. knowledge c. values
b. skills d. quality of people
4. There were inhabitants in the Philippines about 250,000 to
300,000 years ago. They arrived from other countries
through the bridges. They had primitive economic
existence. More civilized migrants came in later years.
5. The Philippines was a slave of three colonial masters:
a. U.S. exploited our agricultural economy, political
independence
b. Japan completely ruined our economy
c. Spanish rule introduced the tobacco monopoly and
galleon trade
Chinese dominated the retail trade.
6. President Carlos Garcia- import control program
7. Under the Martial rule, the friends of the Dictator controlled
Philippine business
Corazon Aquino- democracy was restored
- private business sector
Fidel Ramos- sustained most of the good programs
8. The national government, in its effort to alleviate poverty,
has been promoting the growth of entrepreneurship. It has
several financial and technical assistance programs for the
poor who are interested in putting up their micro
businesses.
Socio-economic benefits from Entrepreneurship
a) Promotes self-help and unemployment
b) Mobilizes capital
c) Provides taxes to the economy
d) Empower individuals
e) Enhance national identity and pride
f) Enhance competitive and consciousness
g) Improves quality of life
h) Enhances equitable distribution of income and wealth

The Role of Entrepreneurship in Economic Development

1. offers an economical and faster method of distributing

goods and services
2. capable of generating more jobs, income, goods &
services
3. improves the quality of life
4. contributes to more equitable distribution of income
5. utilizes & mobilizes resources
6. brings social benefits through the government
7. takes the risks and invests his resources to make
something new or better

Determinants of economic development:

Economic development- process
Economic growth- product

Development and Growth Theories

a) Laissez-Faire Theory government should not
interfere in economic activities.

b) Keynesian Theory government should play the

key role in economic development.

c) Ricardian Theory (David Ricardo) focusing on

agriculture playing the major role in economic
development.

d) Harrod-Domar Theory (England & U.S.) more

products can be produced thru the use of machines.

e) Kaldor Theory (Nichols Kaldor) key factor is

technology application in the production of goods

Contributions of entrepreneurship:
• development of new markets,
• discovery of new sources of materials,
• mobilization of capital resources,
• introduction of new technologies,
• creation of employment

11. There is a need for a Filipino entrepreneurial economy.

This means our productive resources should be in the
hands of Filipinos for their own benefits.

12. The government can support entrepreneurs from their

various assistance programs on the following: Peace
and Order, Political Stability, Price Stability, Taxes,
Infrastructures, Education and Training, Public
Administration, Production Technology, Marketing
Assistance, and Financial Assistance.