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Origin and 
Nature of 
Lloyd Shefsky
Lloyd Shefsky, in his book entitled, Entrepreneurs are Made Not
Born, defined entrepreneur by dissecting the word entrepreneur in
three parts:

Entre means to enter

Pre means before

Neur means nerve center

“Any business in time to 
form or change 
substantially that business 
nerve center.”
Karl Vesper

He describes an entrepreneur in a broader perspective by
postulating that entrepreneurship is now a concern of various

To an economist, an entrepreneur is 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.

To a psychologist, an entrepreneur could refer to such a person as
typically driven by certain forces: need to obtain or attain
something, to experiment, to accomplish, or perhaps to escape
from authority of others.

To one businessman, an entrepreneur appears as a threat, an
aggressive competitor, whereas to another businessman, the
entrepreneur may be an ally, a source of supply, a customer, or
someone good to invest in.

The same person as seen by capitalist philosopher as one who
creates wealth for others as well, who finds better ways to utilize
resources, and reduce waste, and who produce jobs.
Robert Nelson

Professor Robert Nelson of the University of Illinois
defines entrepreneur as “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
• Schumpeter
In his essay entitled Change and Entrepreneur,
he described entrepreneurship as doing things
that are not generally done in the ordinary
course of business routine.
Jeffry Timmons

Jeffry Timmons and his co-authors of the book
entitled New Ventures Creation, has described
entrepreneurship as the “ability to create
human and creative act”.
Albert Shapero

He studied other works on entrepreneurship
has opined that in all definitions of
entrepreneurship, there is an agreement that
we are talking about a kind of behavior.

Initiative taking

The organizing and recognizing of
social/economic mechanisms to
turn resources and situations to
practical account.

The acceptance of risks and failure
“Entrepreneurship  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
Entrepreneurship is a
process and approach

Albert Shapero pointed out that
entrepreneurship is a dynamic process of
innovation and new venture creation through
five major dimensions.
Five Major
1. Individuals
2. Organization
3. Process
4. Environment
5. Institutions
The entrepreneurial event focuses
on the process of entrepreneurial
activity and includes the following
1. Initiative

2. Organization
Socio Economic
benefits from
1. Entrepreneurship
Promotes self-help and unemployment
2. Mobilizes Capital
3. Provides taxes to the economy
4. Empower Individuals
Socio Economic
benefits from
5. Enhance national identity and pride
6. Enhance competitive consciousness
7. Improves quality of life
8. Enhances equitable distribution of
income and wealth.

The Philippine 
Role of Entrepreneurship
in Economic
Entrepreneurship offers an economical and
faster method of distributing goods and
services that accelerates economic
2. Entrepreneurship is capable of generating
more jobs, income, goods and services.
Role of Entrepreneurship
in Economic
3. Entrepreneurship improves quality of life.

4. Entrepreneurship contributes to more

equitable distribution of income, therefore,
eases social unrest.
Role of Entrepreneurship
in Economic
5. Entrepreneurship utilizes and mobilizes
resources to make the country productive.

6. Entrepreneurship brings social benefits

through the government.
Role of Entrepreneurship
in Economic
7. Entrepreneurship has several definition.
Any person who takes the risks and invests
his resources to make something new or
better is engaged in entrepreneurship.
Role of Entrepreneurship
in Economic
8. Economic development is a process,
while economic growth is a product of
economic development.
Role of Entrepreneurship
in Economic
9. Development and Growth Theories

a. Laissez-Faire Theory
explains that the government should not
interfere in economic activities.
Role of Entrepreneurship
in Economic
b. KeynesianDevelopment
explains that the government should play
the key role in economic development.
c. Ricardian Theory (David Ricardo)
focusing on agriculture playing the major
role of in economic development.
Role of Entrepreneurship
in Economic
d. Harrod- Domar Theory
Conceptualized by Sir Harrod of England
and Prof. Domar of the U.S
Claims that more products can be
produced through the use of machines.
Role of Entrepreneurship
in Economic
e. Kaldor Theory (Nichols Kaldor)
-maintains that the key factor is technology.
This theory explains that the application of modern
technology in the production of goods and services
has been responsible for the economic success of
the highly developed countries.
Role of Entrepreneurship
in Economic
f. Innovation Theory (Joseph Schumpeter)
-stresses the role of innovators or
entrepreneurships in economic
Role of Entrepreneurship
in Economic
10. Contributions of Entrepreneurship
a. Development of new markets
b. Discovery of new sources of materials
c. Mobilization of Capital Resources
d. Introduction of New Technologies
e. Creation of Employment

Qualities, and 
Characteristics of 
an Entrepreneur
Attributes of an
1. Self-awareness
2. Self-motivated
3. Courage
4. Confidence
5. Positive Thinkers
6. Patience
Attributes of an
7. Decisiveness
8. Experience
9. Knowledge
10. Information Seeking
11. Perseverance
12. Drive
Attributes of an
13. Risk-Taking
14. Innovative
15. Opportunity Seeking
16. Demand for efficiency and quality
17. Systematic planning and monitoring
18. Persuasion and networking