Entrepreneur

Businessman

- act as intermediaries; middle man.

Importance of Entrepreneur

- create and generate employee

Magna Carta

- intended for small enterprises for financial support given by the government. - R.A. 6977, signed and established on Jan 24, 1991 to assist, promote, and develop SME's.

Entrepreneur

- is an enterprising individual who builds capital through risk and/or initiative. - the term was originally a loanword from French and was first defined by the Irish-French economist Richard Cantillon in the 19th century. - is a term applied to a person who is willing to help launch a new venture or enterprise and accept full responsibility for the outcome.

Business

- is an organized effort of individuals to produce and sell goods and services in order to satisfy the needs of society.

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Determinants of Successful Entrepreneurship (4)

1. Ability to conceptualize and plan 2. Ability to manage others 3. Ability to manage time and to learn new things 4. Ability to adapt changes

Characteristics of Entrepreneur (4)

1. Capability of innovating 2. Introducing new technologies 3. Increasing efficiency and productivity 4. Generating new products/services

Contributions of Entrepreneur (5)

1. Develop new market - entrepreneur create buyers 2. Discover new sources of materials - they can substitute new materials 3. Mobilize capital resources 4. Introduce new technologies, new industries, and new product 5. Create employment

Steps in Decision Making (6)

1. Identifying the problem 2. Gathering the data about the problem 3. Analyzing the data 4. Formulation alternative solutions 5. Selecting the best solution for the problem 6. Implementing the solution

Development and Growth Theories (7)

1. Laissez Faire - the government should not interfere in economic activities 2. Keynesian - the government should play the key role in the economic development 3. Ricardian - by David Ricardo; the key factor in economic growth is through land 4. Harrod-Domar - the key factor in economic growth is through machines/physical capital 5. Kaldor - by Nicholas Kaldor; the key factor in economic growth is through technology 6. Innovation - developed by Joseph Schumpeter; the key factor to economic growth is through innovation/entrepreneur 7. Non-economic theories - the key factor in economic development are (4): > political stabilities > efficient public administration > open society > positive cultural values

Essential Qualities of Entrepreneur (3)

1. Leadership - lead, direct 2. Management ability - POSDICON 3. Team building - cooperation from top to rank and files

8 Features of a Small Business

1. Low in capital but high in labor intensity. 2. Efficient and they specialized on skill and services. 3. Succeed in small, isolated, and overlooked markets. 4. Often operates in unstable market. 5. Closer to the market place. 6. The owner is also the manager. 7. The capital comes from the owner itself. 8. The area of operation is small.

2 Kinds of Small Business

1. Micro business - the owner is also the principal worker and the employee with one or two assistants. 2. Small business - the owner mainly directs the work of the employees.

The Government Assistant Program in the Entrepreneur (10)

1. Peace and order 2. Political stability 3. Price stability 4. Taxes 5. Education and training 6. Public administration 7. Infrastructure 8. Production Technology 9. Marketing assistance 10. Financial assistance

Characteristics of Entrepreneur (7)

1. Reasonable risk takers - they enjoy challenges but they are very careful because of cost 2. Self-confidence - they have strong faith in their ability and capacity 3. Hard-working - push themselves to the limit 4. Innovative - creative 5. Leadership 6. Positive thinkers - they think of success and bright side 7. Decision makers

Qualities of a Good Leader (7)

1. Selfless-dedication 2. Purpose and vision 3. Courage 4. Conviction 5. Integrity 6. Hard-work 7. Enthusiasm

Types of Entrepreneur (4)

1. Social entrepreneur - is motivated by desire to help, improve, and transform social, environmental, educational, and economic condition. 2. Serial entrepreneur - is one who continuously comes up with new ideas and starts new businesses. 3. Lifestyle entrepreneur - places passion before profit when launching a business in order to combine personal interests and talent with the ability to earn a living. 4. Cooperative entrepreneur - doesn't just work alone, but rather collaborates with other cooperative entrepreneurs to develop projects, particularly cooperative projects.

Entrepreneurship

Development -> Process Growth -> Product

SME Categories

50,000 or less -> Micro 50,001 - 500,000 -> Cottage 500,001 - 5,000,000 -> Small 5,000,001 - 20,000,000 -> Medium (20,000,000 and higher -> Corporation)