Introduction to

Entrepreneurship

Unlocking the Secrets of Wealth Creation

October 7, 2017
A. General Concepts
The ENTREPRENEUR
Our common understanding

The boss
The business owner

The risk taker

One who starts a small

business
The resourceful guy?
No single definition
French word origin

Entrependre an
undertaker
For this course:
Walt Disneys definition
.to do things and
make things which will
give pleasure to people
in new and amazing
ways. .It is magic!

*From the lecture given by Larry Farrel at SBMA, August 7, 2002

and at UAP, October 30, 2009.
Walt Disney and
entrepreneurship

Simply amazing!
Magical
Entrepreneurship involves:

MAGIC soft issues

LOGIC hard issues

According to George Gilder
from The Spirit of the Enterprise*

It is making the world forever new.

It is taking aggressive actions.
According to Joseph Schumpeter -*
It is destroying the old order and creating
new ones.

*From Business as a Calling by Michael Novak

It is about:
NEW:

Business ideas
Products

Processes

ENTREPRENEURS
HIP
A MINDSET
About a forever

innovating mindset
THE THREE MASTERIES FOR
AN ENTREPRENEUR:

Mastery of Self
Mastery of
Opportunity
Mastery of the
Enterprise
 Entrepreneurial
Leadership

Enterprise
Mastery Mastery
of Self of
Organization
Corporate

Corporate
Leadership
 Aspects of
Self-Mastery
Traits of an Entrepreneur
- Ds and Fs

Is it better to drop out?

Is it better to get F as a grade?
 Ds
Dream
Determined
Details
Dollar (Peso, in our case)
Decision
Doer
Distribute
Destiny
Devotion
Dedication
 Fs
Founder
Faith
Focused
Frugal
Fast
Fun
Flexible
Flat
Forever Improving
Anatomy of the
Entrepreneur
The Entrepreneurial
Mind Frame

The Entrepreneurial
Heart Flame

The Entrepreneurial
Gut Game
Anatomy of the
Entrepreneur
WISDOM
What lies
behind us,
what lies
HEART
before us, is
nothing
GUTS
compared to
what lies
HANDS
within us.
Self Analysis:

Gifted minds
Steely Guts

Ability to intuit
Courage

Patriotic Hearts
Hands that truly care
Do I possess all of the above?
The Entrepreneurs
Brain

Let us do a brain
surgery
I have 4
brains:
left cerebral,
left limbic,
right limbic,
Right cerebral.
The HBDI developed by Hermann yielded
a brain dominance profile

Logical
Factual
Critical
Technical
Analytical
Quantitative
Interpersonal
Kinesthetic
Emotional
Spiritual
Sensory
Feeling
 PREFERRED SUBJECTS
Arithmetic Arts
Algebra
Geometry
Calculus Design
Logic Poetry
Science Architecture
Technology
Finance A D Marketing

B C Social Sciences
Programming
Psychology
Accounting Dance
Technical Drama
Management High-Skilled Sports
Production
People-Management
 PREFERRED PROFESSIONS
Lawyers Entrepreneurs
Engineers Explorers
Computer Systems Analysts Artists
Financial Analysts Playwrights
Technicians Scientists in R&D
Advertising
Physicians
Statisticians A D Composers
Jazz Musicians
Bureaucrats
Administrators B C Guidance Counselors
Public Relations
Bookkeepers
Planners-Programmers Nurses
Elementary Teachers Social Workers
Policemen Entertainers
Cashiers HRD
Production Supervisors Salesmen
Maintenance People Priests
Classical Musicians
 Cerebral

Left mode Right mode

CEOs
male or female
Limbic
 Cerebral

Left mode Right mode

Entrepreneurs

Limbic
B. Forms of
Entrepreneurship

1. Social Entrepreneurship
2. Business Entrepreneurship
3. Techno Entrepreneurship
1. Social
Entrepreneurship
1. Social Business Mix

Social Profit
NGO NGO Enterprise Business Maximization
(non-profit) (for-profit) Enterprise Business
(PMB)
Social CSR Business
Business Enterprise
Social Entrepreneurship

Any creative and innovative

solution applied to solve social
problems (Mohammad Yunus,
2007)
It involves social mission
Profit and/or entrepreneurial
processes
Banker to the poor
Social Entrepreneurship
Search for approaches to move
poor people out of poverty beyond
welfare-based safety nets.
No more charities
Sustainability

Profits for non profits

Social Entrepreneurship
CSR corporate social
responsibility
CSV corporate shared value

Human Nature
Social Business
The triple bottom line

PEOPLE
PROFIT

PLANET

BOP Bottom of the Pyramid

BOP Bottom of Pyramid

A-B 9%
Above poverty
C 20% threshold

D-E 31%
Living on less
than $2 per day

Living on less
F 40% than $1 per day
 Mother
Teresa did
what no other
person has
done before
to take care of
the poor,
destitute and
lepers
 Lance Armstrong
7 times Tour de
France champion
His real victory is
with the LAF where
he helps hundreds
of cancer victims
 Sir Edmund Hillary was
first to conquer Mt. Everest
 Sir Edmund Hillary came back to
Nepal and helped the Sherpas
improve their living conditions.
Mohammad Yunus
Taught Developmental Economics at
the University of Chitagoong in
Bangladesh.
Economics, right at the outskirt of the
University, poverty was everywhere.
He found out that all that was needed
by the poor was a loan of 27 chakas.
Thats how the Grameen Bank started.
Why are they
entrepreneurs?

They had little or

no resources at all
but they survived
and achieved what
they wanted in life
2. Business
Entrepreneurship

Business for profit

Business Entrepreneurship

Its about the study of systems,

structure, and staffing to make a
large corporation stay competitive,
innovative, and profitable on a
sustainable basis.
The business cycle according to Larry
Farrel intl expert on entrepreneurship

Growth Decline

Start Survival /
Failure

ENTREPRENEURIAL MANAGERIAL
No longer excellent!...

In 1983, there was the book In

Search of Excellence by Tom
Peters and Waterman. It sold 6
million copies. Then...

Something went wrong...

 33% of the Excellent Companies
vanished
Too big to fail companies

Where are they now?:

Washington Mutual
Bear Stearns
Pacific Bank
Banco Filipino
Vanishing giants

Dinosaurs of the corporate

world
ENTREPRENEURIAL
COMPANIES
Keeping the Sense of
Mission alive as you grow
Re-instilling
customer/product vision in
every employee
Fostering high-speed
innovation
Making self-inspired behavior
the organization standard
 BUSINESS
ENTREPRENEURSHIP
Entrepreneur
(Self)

IDEA REALITY
TIME

Resources Opportunity
 Growth

Differentiation Strategic direction

Three Competencies of the
Complete Entrepreneur
ORIGINATOR

OPERATOR implementor ORGANIZER

Compelling Reasons
Why We Need
Entrepreneurs
90% of the worlds jobs are created by
entrepreneurs
Source of new products and innovation
In the third-world countries, the entrepreneurs
keep the sagging economies alive
Its the entrepreneurs not the central bank
that keep the economy moving
Finally...
...in the Philippines
Its not GMA nor the government
that was responsible for sheltering
the Philippines against bad times.
GUESS WHO?!
 In the GEM report of 2006-2007, RP is
No. 2 in the world for entrepreneurial
activity.
Peru is No. 1
RP is a HOTBED OF
ENTREPRENEURSHIP!
4 out of 10 adult Filipinos are into
business
Highest in Northern Luzon 54%

Lowest in Metro Manila 30%

In the early stages, it is highest in

Mindanao, at 73%
Entrepreneurship in the Philippines:
Issues from a Global Perspective
 Other trivia:
Battle of the sexes:

51% of all businesses

are started by women
55% of all businesses

are run by men

Of the nascent

businesses, 60% are

run by women
Entrepreneurial ION
(Process)
InspiratION (idea)
AmbitION PerspiratION (past jobs)

PassION
+ RecreatION (hobbies) =
Idea FruitION

FrustratION (what pisses you off)

Enterprise
CreatION

Sea of Opportunity
Is Entrepreneurship easy?

We choose to go to the moon in this decade

and do all the other things to get there, not
because they are easy but because they are
hard, because that goal will serve to
measure the best of our energies and skills,
because that challenge is one we are willing
to accept and we are unwilling to postpone,
and which we intend to win and others too.
-- JFK, 1962
So you want to be a billionaire

Put your name here:

__________________________________
THE NEXT MILLIONAIRE / WINNER