Introduction to Entrepreneurship

Unlocking the Secrets of Wealth CreationApril 7, 2023

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

Entependre – an undertaker

Walt Disney’s 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.

For this course:

Walt Disney and entrepreneurship

Simply amazing!

Magical

Entrepreneurship involves:

MAGIC – soft issues

LOGIC – hard issues

“It is making the world forever new. It is taking aggressive actions.”

According to George Gilder – from “The Spirit of the Enterprise”*

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

ENTREPRENEURSHIP A MINDSET About a forever

innovating mindset

Timmons

“It is creating something from practically nothing”

“ It is doing something vs. just talking”

It is about:

Action Strategy Courage Wise use of resources Start with what he has

THE THREE MASTERIES FOR AN ENTREPRENEUR:

Mastery of Self Mastery of

Opportunity Mastery of the

Enterprise

Masteryof Self

Masteryof

Organization

Enterprise

Corporate

Entrepreneurial Leadership

Corporate Leadership

Aspects of Self-Mastery

Traits of an Entrepreneur - D’s and F’s

Is it better to drop out?

Is it better to get F as a grade?

Dream Determined Details Dollar (Peso, in our case) Decision Doer Distribute Destiny Devotion Dedication

D’s

Founder Faith Focused Frugal Fast Fun Flexible Flat Forever Improving

F’s

Anatomy of the Entrepreneur

The Entrepreneurial Mind Frame

The Entrepreneurial Mind Frame

The Entrepreneurial Gut Game

The Entrepreneurial Gut Game

The Entrepreneurial Heart Flame

The Entrepreneurial Heart Flame

Anatomy of the Entrepreneur

WISDOM

HEART

GUTS

What lies behind us, what lies before us, is nothing compared to what lies within us. HANDS

Self Analysis:

Gifted minds Steely Guts

Ability to intuit Courage

Patriotic Hearts Hands that truly care

Do I possess all of the above?

The Entrepreneur’s 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

TechnicalAnalytical

QuantitativeInterpersonalKinestheticEmotionalSpiritualSensoryFeeling

PREFERRED SUBJECTS Arithmetic Algebra Calculus Logic Science Technology Finance

Programming Accounting Technical Management Production

Arts Geometry Design Poetry Architecture Marketing

Social Sciences Psychology Dance Drama High-Skilled Sports People-Management

A

B C

D

PREFERRED PROFESSIONS Lawyers Engineers Computer Systems Analysts Financial Analysts Technicians Physicians

Statisticians

Bureaucrats Administrators Bookkeepers

Entrepreneurs Explorers Artists Playwrights Scientists in R&D Advertising

Guidance Counselors Public Relations Nurses Social Workers Entertainers HRD

A

B C

D Composers Jazz Musicians

Planners-Programmers Elementary Teachers Policemen Cashiers Production Supervisors Maintenance People Classical Musicians

Salesmen Priests

CEO’smale or female

Cerebral

Right modeLeft mode

Limbic

Entrepreneurs

Cerebral

Right modeLeft mode

Limbic

B. Forms of Entrepreneurship

1. Social Entrepreneurship

2. Business Entrepreneurship

3. Techno Entrepreneurship

1. Social Entrepreneurship

1. Social Business Mix

NGO(non-profit)

NGO(for-profit)

SocialEnterprise

Social Business

BusinessEnterprise

CSR

Profit Maximization

Business (PMB)

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%

C 20%

D-E 31%

F 40%

Living on less than $2 per day

Above poverty threshold

Living on less 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. That’s 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

It’s about the study of systems, structure, and staffing to make a large corporation stay competitive, innovative, and profitable on a sustainable basis.

2 types of business entrepreneurship

The business cycle according to Larry Farrel – int’l expert on entrepreneurship

Survival /

Failure

DeclineGrowth

Start

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)

Resources Opportunity

IDEA REALITYTIME

Differentiation

Growth

Strategic direction

Three Competencies of the Complete Entrepreneur

ORIGINATOR

OPERATOR ORGANIZER

inno

vato

r inspirer

implementor

Compelling ReasonsWhy We Need Entrepreneurs 90% of the world’s jobs are created by

entrepreneurs Source of new products and innovation In the third-world countries, the entrepreneurs

keep the sagging economies alive It’s the entrepreneurs – not the central bank –

that keep the economy moving Finally...

...in the Philippines It’s 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)

AmbitION

PassION +

Sea of OpportunitySea of Opportunity

InspiratION (idea)

PerspiratION (past jobs)

RecreatION (hobbies)

FrustratION (what pisses you off)

Idea FruitION

EnterpriseCreatION

=

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

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__________________________________THE NEXT MILLIONAIRE / WINNER