Entrepreneurship has an enormous impact on the economy and in the society.

Globally, the level of entrepreneurial activity has

contributed significantly to the national level of economic growth of many countries.

ENTREPRENEURIAL ACTIVITIES

 Entrepreneurial activity responds to policies that ensure the

protection of new ideas, facilitate access to capital and talent,
allow the management of risks
 There are many efforts in various countries to uplift the lives of its citizens.
 Entrepreneurship is one of the key engines of economic growth
 Entrepreneurship is perceived to be the symbol of business innovation, determination, perseverance and achievement.
 It is a catchword in this era of globalized economy
 It is a foundation and catalyst for economic growth and innovation across nation
 Small and Medium Enterprises (SMEs) are concrete manifestations of entrepreneurship.
 Joseph Schumpeter, an Austrian economist, was the one who first articulated the importance of entrepreneurship to the
economy and in the society in 1934.

DEFINITION OF ENTREPRENEURSHIP FROM EARLY ON TO PRESENT

ENTREPRENEURSHIP

 Knight 1921 – having profits from bearing uncertainty and risk

 Schumpeter 1934 – carrying out of new combinations of firm organization—new products, new services, new sources of
raw material, new methods of production, new markets, new forms of organization
 Hoselitz 1952 – uncertainty bearing… coordination of productive resources… introduction of innovations and provision of
capital.
 Cole 1959 – purposeful activity to initiate and develop a profit oriented business.
 McClelland 1961 – taking moderate risk
 Shapero 1975 – a kind of behavior that includes : initiative taking, organizing or reorganizing of social economic
mechanisms to turn resources and situations to practical account and the acceptance of risk failure
 Casson 1982 – decisions and judgements about the coordination of scarce resources.
 Ronstadt 1984 – dynamic process of creating incremental wealth. This wealth is created by individuals who assume the
major risks in terms of equity, time and/or career commitment of providing value for some product or service. The product
or service itself may or may not be new or unique, but value must somehow be infused by the entrepreneur by securing
and allocating the necessary skills and resources.
 Drucker 1985 – behavior rather than personality trait. Its foundation lies in concept and theory rather than in intuition.
 Gartner 1985 – creation of new organizations
 Hisrich & Brush 1985 – process of creating something new with value by devoting the necessary time and effort; assuming
the accompanying financial, psychic and social risks and uncertainties; and receiving the resulting rewards of monetary and
personal satisfaction.
 Stevenson & Grousebeck 1989 – pursuit of opportunity without regard to resources currently controlled.
 Hart, Stevenson and Dial 1995 – pursuit of opportunity without regard to resources currently controlled, but constrained
by the founders’ previous choices and industry related experience.
 Shane 2003 – an activity that involves the discovery, evaluation and exploitation of opportunities to introduce new goods
and services, ways of organizing, markets, processes and raw materials thorough organizing efforts that previously had not
existed.
 Kuratko 2009 – dynamic process of vision, change and creation that requires an application of energy and passion toward
the creation and implementation of new ideas and creative solutions.

Dyck and Neubert 2012 – conceiving an opportunity to offer new or improved goods or services, showing the initiative to
pursue that opportunity, making plans, mobilizing the resources necessary to convert the opportunity into reality.

EXAMPLES OF ENTREPRENEURSHIP IN 10 COUNTRIES

1. United States – noted to be one of the friendliest countries for entrepreneurs, home to Apple, Google, Starbucks, Walmart
and Walt Disney
2. China – home to budding entrepreneurs who manufacture different products that range from toys, gadgets, electronics
and cars; a lot of products have generic brand names
3. Singapore – literally a small country that controls a significant portion of the economy in Asia, home to entrepreneurs who
innovate on existing services for local and international use.
4. Canada – entrepreneurs here are exploring opportunities over the internet such as the people from a region called
Sanikiluag, known for their wood carving skills and entrepreneurs are selling their products online.
5. India – one of the countries in the Asia Pacific rim with a strong base of entrepreneur organizations led by the youth and
women.
6. Taiwan – entrepreneurship here is encouraged through the small and medium enterprise incubation centers for the
purpose of nurturing young firms, new products and technologies.
*** incubators – provide space, facilities, hands on management assistance and access to technologies and financing to
clients, helping them to survive and grow during the start-up period.
7. Hongkong – with the knowledge based economy, it utilizes its human resources to make its economy the best possible
through entrepreneurship such as activities related to tourism and agricultural exports which receives strong support from
government and private sector.
8. Thailand – the extent of government support to entrepreneurs is very evident, in its international airport in Bangkok, a
huge section is subsidized by the Bureau of Small and Medium Enterprises for the promotion of local products. Tourism
for the international markets and agricultural exports are two major sources of income of Thai entrepreneurs.
9. Malaysia – this country is becoming friendlier to entrepreneurs which is apparent in the growing numbers of businesses
which decided to locate here.
10. South Korea – it emerged from the Asian financial crisis better than any other country in the region, home to Samsung and
Kia.

EXAMPLES OF ENTREPRENEURSHIP IN 10 COUNTRIES

11. United States – noted to be one of the friendliest countries for entrepreneurs, home to Apple, Google, Starbucks, Walmart
and Walt Disney
12. China – home to budding entrepreneurs who manufacture different products that range from toys, gadgets, electronics
and cars; a lot of products have generic brand names
13. Singapore – literally a small country that controls a significant portion of the economy in Asia, home to entrepreneurs who
innovate on existing services for local and international use.
14. Canada – entrepreneurs here are exploring opportunities over the internet such as the people from a region called
Sanikiluag, known for their wood carving skills and entrepreneurs are selling their products online.
15. India – one of the countries in the Asia Pacific rim with a strong base of entrepreneur organizations led by the youth and
women.
16. Taiwan – entrepreneurship here is encouraged through the small and medium enterprise incubation centers for the
purpose of nurturing young firms, new products and technologies.
*** incubators – provide space, facilities, hands on management assistance and access to technologies and financing to
clients, helping them to survive and grow during the start-up period.
17. Hongkong – with the knowledge based economy, it utilizes its human resources to make its economy the best possible
through entrepreneurship such as activities related to tourism and agricultural exports which receives strong support from
government and private sector.
18. Thailand – the extent of government support to entrepreneurs is very evident, in its international airport in Bangkok, a
huge section is subsidized by the Bureau of Small and Medium Enterprises for the promotion of local products. Tourism
for the international markets and agricultural exports are two major sources of income of Thai entrepreneurs.
19. Malaysia – this country is becoming friendlier to entrepreneurs which is apparent in the growing numbers of businesses
which decided to locate here.
20. South Korea – it emerged from the Asian financial crisis better than any other country in the region, home to Samsung and
Kia.

FACTORS THAT INFLUENCE THE FRIENDLINESS OF A COUNTRY TO ENTREPRENEURS

 Employment regulations
 Bankruptcy laws
 Tax policies of a country

Skills are better than theoretical knowledge of things, thus giving one an edge of the others if one possesses the skills of
innovation. The entrepreneurs always wanting to befriend with other countries so as to expand its horizon.

Move around in your barangay. Record 5 either micro, small or medium enterprises that have been established there for at
least five years. Find out the effects of their presence in your community.

Look for a woman entrepreneur in your community. Ask her about the reasons for her engaging in entrepreneurship. Report in
class what you have gathered.

DEFINITION OF ENTREPRENEUR

1. From an economist’s point of view

It is someone who brings resources, labor, materials and other assets into combinations that make their value greater
than before
 It is also someone who introduces changes, innovations and a new order.
2. From a psychologist’s point of view
  A person who is typically driven by certain forces such as the need to obtain or attain something, to experiment, to
accomplish or perhaps to escape the authority of others.
3. From a management perspective

It is someone who identifies opportunities, plans, mobilizes resources, manages and assumes the risks of a business to have a
positive impact on society.