University of Luzon

Perez Blvd., Dagupan City

College of Accountancy

Chapter 1
Report in Elective by Ma. Emarla Grace S. Canoza
Under Prof. Dante Narciso, MBA

The Brief History Of Entrepreneurship

US was found in the principle of free enterprise

 Free Enterprise: Freedom of private business to organize and operate for profit in a
competitive system without interference by government beyond regulation necessary
to protect public interest and keep the national economy in balance.

1960s

“Bigger is better”
 Gigantic companies are the norm.
Diversification
 The process of a business enlarging or varying its range of products or field of operation.
Job security
 The probability that an individual will keep his/her job.

1970s

3 Significant Trends

1. Macroeconomic Turmoil
 A situation in which the economy of a country experiences a sudden downturn/
disturbance brought on by a financial crisis.

Vietnam War (1955-1975) where two of US former President, Pres. John F. Kennedy & Pres.
Lyndon B. Johnson got involved. US supported South Vietnam by sending $168B, 3500 troops
and a large volume of gasoline.

Vietnam War’s impact

 Inflation: a sustained increase in the general price level of goods and services in
an economy over a period of time.
 The dollar was devalued
 Food prices skyrocketed
 Formation of OPEC (Organization of the Petroleum Exporting Countries)
 University of Luzon
Perez Blvd., Dagupan City
College of Accountancy

2. International Competition
The 1973 oil crisis
 Oil embargo: impose an official ban on oil

Imports (automobiles and machine tools industries)taking a significant share of the market from
US businesses.

3. Technological Revolution
 A period in which one or more technologies is replaced by another technology in a
short amount of time.
1971 Intel Microprocessor

1975 Mits Altair PC

 University of Luzon
Perez Blvd., Dagupan City
College of Accountancy

1977 Apple II Computer

Deregulation
 The reduction or elimination of government power in a particular industry usually
enacted to create more competition within the industry such as Airline Deregulation Act
of 1978, Natural Gas Policy Act of 1978 & Motor Carrier Act of 1980.

New Era of Business Regulations

1. Environmental Protection Agency
2. Occupational Safety & Health Agency
3. Consumer Product Safety Commission

1980s

The Decade of ENTREPRENEURSHIP

The increasing number of NEW, SMALLER, MORE FLEXIBLE, ENTREPRENEURIAL
MANUFACTURERS who had hired SUBCONTRACTORS made 1980s The Decade of
Entrepreneurship.

 Subcontractor: a business or person that carries out work for a company as part
of a larger project.
 University of Luzon
Perez Blvd., Dagupan City
College of Accountancy

DIFFERENCE IN HIRING A(n)

Lean & Mean

 Using only what is necessary, and determined to work effectively in order to compete
successfully.
 Downsize: To make (a company or organization) smaller by eliminating staff positions.

Anti-diversification
 The process of NOT enlarging or varying the range of products or field of operation.

Takeover
 The purchase of one company (the target) by another (the acquirer, or bidder).

Small firm innovation

 INTERNATIONALIZING: The process of designing products to meet the needs of users in
many countries or designing them so they can be easily modified, to achieve this goal.

The Decades That Invented the Future: 1981-1990

1. THE LEVERAGED BUYOUT (BUSINESS)

2. STEALTH (WAR)
University of Luzon
Perez Blvd., Dagupan City
College of Accountancy

3. ADDITIVE MANUFACTURING (DESIGN)

4. SPACE SHUTTLE COLUMBIA (SCIENCE)’

5. THE IBM PC (COMPUTERS)

6. THE MACINTOSH (GADGETS)

 University of Luzon
Perez Blvd., Dagupan City
College of Accountancy

7. MTV (ENTERTAINMENT)

1990s

Information Age

 The modern age regarded as a time in which information has become a commodity
that is quickly and widely disseminated and easily available especially through the
use of computer technology.
 INTERNET: A globally connected network system invented in 1983.
 World Wide Web (WWW): A network of online content that is formatted in HTML
and accessed via HTTP, designed in 1991 by Tim Berners-Lee.
 DOT COM (bubble): A company that embraces the internet as the key component in
its business.

 Alternatively, the Internet can be viewed as a big book-store

while the Web can be viewed as collection of books on that store.
At a high level, we can even think of the Internet as hardware
and the Web as software!
No Job Security

Fewer Benefits

Service Firm Growth:

The services industry was the driving force behind job growth during the 1990s. Rapid
technological transformation helped prolong the longest economic expansion on record and
helped create a substantial number of employment opportunities in services. Of the 10 specific
industries adding the most jobs during the decade, 7 were in services.

Creative Financing

 The goal of creative financing is generally to purchase, or finance a property, with the
buyer/investor using as little of his own money as possible, otherwise known as
leveraging, OPM (Other People's Money).
 University of Luzon
Perez Blvd., Dagupan City
College of Accountancy

2000s

Knowledge Economy
 Knowledge: The facts, information, and skills acquired by a person through experience
or education
 Economy: The wealth and resources of a country or region, especially in terms of the
production and consumption of goods and services.

INFORMATION AGE vs KNOWLEDGE AGE

With the Information Age, individuals have started to move online, rapidly adopting new
technologies and communication strategies that allow them unprecedented access to content and data
as well as the ability to connect to individuals around the world.

In this new economy under knowledge age , "human work will increasingly shift toward two kinds of
tasks: solving problems for which standard operating procedures do not currently exist, and working
with new information-- acquiring it, making sense of it, communicating it to others" (Levy & Murnane,
2013). Combine these work requirements with the increasing globalization and connectedness of the
Information Age, and new skills will be required if people hope to remain competitive in the
marketplace.

Rebirth of Commercial Internet

These “5 Successful Companies That Survived The Dotcom Bubble” gained the attention of
investors that gave the idea that businesses stablished in the Internet can earn profit and be
firm in the industry.
1. Amazon.com
2. eBay
3. Priceline.com
4. Shutterfly
5. Coupons.com

Renewed interest in biotech/biomed

 After the crashed of dotcom bubble in year 2000, there’s a renewed interest in non-
internet related technologies.

Low transfer costs

 Because timely information are easily accessed by people, obtaining and transferring
them doesn’t cost much.