LESSON 2 SCHUMPETER’S VIEW OF ENTREPRENEUSHIP

Entrepreneur – “entreprende” to undertake ● NEW PRODUCT

- process which individuals identify ● NEW PRODUCTION METHOD

opportunities
●NEW MARKETS
- practice of starting a new business
●NEW FORMS OF ORGANIZATION
- utilization of both material and manpower

Stems from French – between taker

TWO APPROACHES TO PROBLEM SOLVING
Middle ages – actor and person in charge of
ADAPTER
large scale
●Employs a discipline, precise methodical
17th century – person bearing risks of profit loss
approach
1725 Richard Cantillon – person bearing risk in
●It concerned with problem solving, rather than
diff from one supplying capital
finding problems
1797 Beaudeau-0020 – person being risk
●Attempts to refine current practices
planning
●Tend to be means – oriented
1803 Jean Baptiste Say – separated profits of
entrepreneur from profits of capital ●Is capable of extended detail work
1876 Francis Walker – Distinguished those who ●Is sensitive to group cohesion and cooperation
supplied funds
INNOVATOR
1934 Joseph Schumpeter- entrepreneur is an
innovator ●Approaches task from unusual angles

1961 David Mclelland – entrepreneur is ●Discover problems and avenue of solution

energetic, moderate risk taker ●Questions basic assumptions related to
1964 Peter Drucker – entrepreneur maximizes current practices
opportunity ●Has little regard for means, is more interested
1975 Albert Shapero – entrepreneur takes in ends
initiative ●Has little tolerance for routine work
1980 Karl Vesper- entrepreneur seen different ●Has little or more need for consensus;
by economics
●Often is sensitive for others
1983 Gifford Pinchot – entrepreneur within an
already established org Albert Shapero – pointed out that
entrepreneurship is a dynamic process of
1985 Robert Hisrich- Entreneurship is the innovation
process of creating something diff with value
FACTORS THAT AFFECT ENTREPRENEURIAL 3. Price stability
ACTIVITY PROCESS
4. Taxes
Initiative
5. Infrastructures
 An individual or group takes the
6. Education and training
initiative
7. Public Administration
Organization
8. Production Technology
 Resources are brought together in
organization to accomplish some object 9. Marketing Assistance
Administration 10. Financial Assistance
 Those who look the initiative to take
over the management of the operation
Socio Economic Benefits of
Relative Autonomy Entrepreneurship
 The initiator assume relative freedom  Promotes self employment
to dispose of and distribute resources.
 Mobilizes capital
Risk Taking
 Provides taxes to the economy
 The organization’s success or failure is
shared by the initiator’s superiors and  Empowers individuals
subordinates.  Enhance national identity and pride

 Enhance competitive consciousness

Entrepreneurship in the Philippines  Improves quality of life
- 99 percent of all business establishment , 60  Enhances equitable distribution of
percent of the exporting firms income and wealth
Current problems that Filipino entrepreneur

 Inadequate access to
technology

 Financing capital

 Marketing advice

 Logistical problems

Government Assistance program

1. Peace and order

2. Political stability
LESSON 3  Question assumptions

IDEATION – is the beginning of business  Name it first, then develop it

endeavour
CONFIDENTIALLY AGREEMENTS- it specifically
- Should be first investment of anybody who provides that a signer
seeks to be an entrepreneur
PATENTS- is granted to person who “invents or
Hiam and Olander - the single most important discovers any new and usable process,
activity of any entrepreneur or small business
 Design Patents- protects the way
manager is to generate business ideas.
something looks as opposed to the way
good idea- one that is worth exploring or it operates.
converting into a business option-
 Utility Patents- protects the actual
Gap Analysis- another means of finding venture mechanical, chemical, computer or
ideas is exploring the technique in gap analysis process design of an inventions.

Steps in Gap Analysis:  Plant Patents- protections on new

strains of plants created by engineered,
1. Make a list of characteristics desired in
asexual production.
a venture
 TRADEMARKS- is a word, name,
2. Select some general market in terms of
symbol, or device ( or any combination
type of customer and divide it into
of these) used by manufactured or
progressively narrower classifications.
merchants to identify their goods and
3. List problems that might plague that distinguish them from those made/sold
market group I that particular by others.
circumstances.
 COPYRIGHTS- protects the creative
4. Narrow the problem list down by work of composers, authors/writers,
filtering it through the desired venture artist, film makers and others. In
characteristics. general terms, a copyright endures
during the lifetime of the creator and
5. For each of the remaining problems, for 50 years after his death.
generate possible solutions through
brainstorming. CREATIVITY- is an essential part of
innovativeness
6. Evaluate the solutions to select the
most promising for the venture. - it is also the starting point of a process

Developing an Idea INNOVATION – doing something different,

introducing new
 Recognize the need
Breakthrough Innovations- basic rules and
 Improve existing product principles have been broken
 Recognize trends

 Be aware of everything