CHAPTER 1

Introduction to Entrepreneurship
Origin
The word “entrepreneur” originates
from 18 Century French verb,
th

“entreprendre”, meaning “to do

something” or “to undertake.” It was
used mainly to describe a “manager or
promoter of a theatrical production”.
Origin
 Richard Cantillon,
first used the word
“Entrepreneur” in
his book published
in 1755 “Essai sur
la Nature du
Commerce au
General (Essay on
the Nature of
Commerce)”.
Origin
 In this book, Richard
uses the term
“entrepreneur” and
applies it to anyone
who bought or made
a product at a
certain cost to sell
at an uncertain
price.
Origin
It was Cantillon who
established the
entrepreneur as a “risk-
taker”.
 It is believed that the term
combined two Latin words
“entre” (meaning ‘to swim
out’) and “prendes”
(meaning ‘to grasp,
understand, or capture’) to
create the term
“entrepreneur”.
RECITATION (5 Points)
What’s the GREATEST RISK you have ever
taken, so far?
Share to us something that you’ve been
longing to do, but scares the crap out of
you. Why does it scare you?
Origin
 After Richard Cantillon,
a French economist Jean
Baptiste-Say used the
word “Entrepreneur” to
define an “adventurer”
or “one who undertakes
an enterprise, especially
a contractor, acting as
intermediary between
capital and labor”.
  Jean-Baptiste Say in
Origin his 1800 Treatise on
Political Economy
defined the
entrepreneur as
someone who “shifts
economic resources
out of an area of
lower and into an area
of higher productivity
and greater yield.”
RECITATION (5 Points)
When was the last time you were
subjected into pressure or stressful
situation?
Since, you’re still here, alive, how did
manage the situation? Or did someone
else do it for you?
Origin
 In 1934, an Austrian
American political
scientist and economist
Joseph Schumpeter in his
Theory of Economic
Development, gave us a
more modern definition of
entrepreneur as “the
person who destroys the
existing economic order
by introducing new
products and services, by
creating new forms of
organization, or by
exploiting new raw
materials.”
RECITATION (5 Points)
When was the last time you were called
“PABIBO”?
Did you embrace it or did you just let
them pull you down?
What was the result?
Origin
 Later, the US business
consultant Peter Drucker,
believed that the term
‘Entrepreneur’ should only
apply to people who create
something new, something
different. i.e. people who
change or transmute values.
 According to Drucker, the
entrepreneur always searches
for change, responds to it, and
exploits it as an opportunity.
RECITATION (5 Points)
When was the last time you’ve set a
TREND?
Who were those people you’ve
influenced?
How long did it last?
Entrepreneur, Intrapreneur or Innovator?
An “Entrepreneur” is an
owner of a business who
“invests his/her resources
to bring an idea to life,
setting the direction that
transforms that idea into
reality, thus providing and
gaining value that balances
effort, purpose, and
profit”.
Entrepreneur, Intrapreneur or Innovator?

An “Intrapreneur” is a corporate

entrepreneur who does everything like
an entrepreneur, but does not have a
financial stake in the business.
Entrepreneur, Intrapreneur or Innovator?
An “Innovator” is a person
who introduces either a
new process, product,
service or business model
to the marketplace that
becomes commercially
successful.
Entrepreneur, Intrapreneur or Innovator?

An inventor on the other hand creates

something new, but has no attained
commercial success.