entrepreneurship 101 for coop lecture

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“Poor is he who works with a negligent hand, but

the hand of the diligent makes rich.”“Ang kamay na tamad ay

tiyak na magdarahop ,ngunit

mabubunton ng yaman ang kamay na masinop.”

Proverbs 10:4

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Happy ka na babilang isang

Empleyado?

maybahay?

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Working8-10

hours a day

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Sapat na ba ang sahod mo?

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Trabaho

Suweldo

Bayad

Utang

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May naiipon ka

pa bapara sa

pagtanda mo?

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Gusto mo bang umasenso?paano Ako

aasenso?

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Pay Debts

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BASIC NEEDS

FOOD CELLPHONE LOAD

CLOTHINGSHELTER

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EXPAND YOUR

IMAGINATIO

N

LUZON

VisayasMINDANAO

BUT WHY STOP THERE?

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ARE YOU READY TO BECOMEAN ENTREPRENEUR?

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ENTREPRENEURSHIP…Joseph Alois Schumpeter (1934)

Entrepreneurship is seen as new combinations including the doing of new things or the doing of things that are already being done in a new way. New combinations include 1) introduction of new good, 2)new method of production, 3)opening of a new market, 4)new source of supplies 5.)new organizations. Austrian-Hungarian-American

economist and political scientist.

PART I

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Entrepreneurship research seeks to understand how opportunities to bring into existence future goods and services are discovered, created, and exploited, by whom, and with what consequences.

Venkataraman,Ramaswa (1997)

an Indian-born American and British structural biologist, who shared the 2009 Nobel Prize in

Chemistry with Thomas A.

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ENTREPRENEURSHIP…is more than a word. It is a mission.capacity for innovation.investment and expansion of new markets products and techniquesinvest resources to make something

unique.

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Ang "ENTREPRENEURSHIP" ay isang siyensya at pag-aaral ng pangangalakal ng mga bagay

bagay at paglilingkod sa maaaring makapagpaunlad ng

kabuhayan ng isang tao.

“QUALITY OF LIFE”

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Forms of Entrepreneurship1. Social Entrepreneurship (Panlipunan)

2. Business Entrepreneurship (Pangkabuhayan)

3. Techno Entrepreneurship (Teknolohiya)

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Driving Economic Growth and Prosperity

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1. Social Business Mix

NGO(non-profit)

NGO(for-profit)

SocialEnterprise

Social Business

BusinessEnterprise

CSR

Profit Maximization

Business (PMB)Business

Enterprise

Non-Government/al Organization

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Social Entrepreneurship

• “Any creative and innovative solution applied to solve social problems” (Mohammad Yunus, 2007)– It involves social mission– Profit and/or entrepreneurial processes

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Banker to the poorMohammad Yunus,

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• “Search for approaches to move poor people out of poverty beyond welfare-based safety nets.”

Social Entrepreneurship

social entrepreneurs are driven not by money but by content, risk‐

taking, implementing innovative ideas,

fulfilling social missions.

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Painters, actors, musicians, writers and all other cultural professionals always look beyond the usual, they create and take actions, use their imagination to make something new.

It is important to outline that entrepreneurs are those who not only invent and implement an innovative idea, but bring it to an economically successful end, considering the marketviability and the positive financial impact on community members.

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• Mother Teresa did what no other person has done before – to take care of the poor, destitute and lepers

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• Sir Edmund Hillary was first to conquer Mt.

Everest

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• Sir Edmund Hillary came back to Nepal and helped the Sherpas improve their living conditions.

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Why are they entrepreneurs?

Social entrepreneurship overcomes the gapbetween the business and the public sectors,as it is connected to the “non profit” or the‐“third” sector, as well as to the concept of the“social economy”, with emphasis onobjectives to serve communities and societyrather than generating a company’s profit.

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Derived from theFrench entreprendre, " to undertake".Someone who is willingand eager to create a newventure in order to present aconcept to the marketplace.

Entrepreneur –

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2. Business Entrepreneurship

• It’s about the study of systems, structure, and staffing to make a large corporation stay competitive, innovative, and profitable on a sustainable basis.

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Start

Growth Decline

Survival /

Failure

ENTREPRENEURIAL MANAGERIAL

The business cycle according to Larry Farrel – int’l expert on

entrepreneurship

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No longer excellent!...

• In 1983, there was the book In Search of Excellence by Tom Peters and Waterman. It sold 6 million copies. Then...

• Something went wrong...

Oooopppsss!!!

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• 33% of the “Excellent” Companies vanished• Too big to fail companies• Where are they now?:

Washington MutualCAP educational planPacific BankBanco Filipino

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Vanishing giants

Dinosaurs of the corporate world

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ENTREPRENEURIAL COMPANIES

• Keeping the Sense of Mission alive as you grow

• Re-instilling customer/product vision in every employee

• Fostering high-speed innovation• Making self-inspired behavior

the organization standard

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BUSINESS

ENTREPRENEURSHIP Entrepreneur (Self)

TIMEIDEA REALITY

Resources Opportunity

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Three Competencies of the Complete Entrepreneur

ORIGINATOR

innov

ator inspirer

OPERATOR ORGANIZERimplementor

(nagbigay simula)

(nagbibigay sigla)

(tagapagpatupad)(namamahala/Nagpapalakad)

(nagtatag)

Nagsimula ng pagbabago)

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Growth (Pag-unlad)

Differentiation

(Pagkakaiba)Strategic directionmatalinong pagplaplano

Complete Entrepreneur

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Compelling ReasonsWhy We Need Entrepreneurs

• 90% of the world’s jobs are created by entrepreneurs

• Source of new products and innovation• In the third-world countries, the entrepreneurs

keep the sagging economies alive• It’s the entrepreneurs – not the central bank –

that keep the economy moving• Finally...

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...in the PhilippinesENTREPRENEURS BRING

ECONOMIC GROWTH

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ENTREPRENEURSHIP: is a LIFESTYLE CHOICE

Millions have done it . . . millions are dreaming of doing it! Why not become your own boss? Individuals are increasingly choosing to go into business, start their own company, work for themselves and create their own job as an alternative means of taking the future into their own hands.

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Entrepreneurship in the Philippines: Issues from a Global Perspective

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Other trivia:• Battle of the sexes:

– 51% of all businesses are started by women

– 55% of all businesses are run by men

– Of the nascent(growing) businesses, 60% are run by women

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honesty ( katapatan)

(KALIDAD)

QUALITIES of ENTREPRENEURS

courage ( lakas ng loob) integrity (integridad/ dangal)

punctuality ( maagap) self-discipline humility

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CHARACTERISTICS OF ENTREPRENEURS

pag-uugali

Reasonable risk –taker. enjoy challenges. But they are careful and calculating. ( makatuwiran pakikipagsapalaran)

Self –confident - have a strong faith in their abilities. Strong belief, affirmative thinking or optimistic.

They always think SUCCESS!!! Nothing is Impossible.

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Hardworking - Successful people always attribute their success to hardwork.

Like Thomas A. Edison, said that success is 99 percent of perspiration

and 1 percent inspiration.

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Innovative (Malikhain)- Entrepreneurs are creative. They do things in new and different ways.

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Leadership - Entrepreneurs are leaders by the nature of their

function.Essential qualities of a Leader: Selfless dedication (lubusang paglilingkod) Purpose and vision (magandang layunin at adhikain)Courage (tibay at lakas ng loob)Conviction (matuwid na paghatol)Enthusiasm (sigla at interes sa ginagawa)Integrity (dangal)Tact (maayos na pakikitungo)Hardwork (masipag)

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Optimistic- Entrepreneurs are positive thinkers. They think of success and bright sides.

Success begets success. Dr. Charles Flory, an american physiologist, said that wealth does not always come to the most intelligent or to the most ambitious individuals, but those individuals who think MONEY…..But being an entrepreneur you always think SUCCESS.

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Decision-makers -

Entrepreneurs make decisions. They cannot avoid this. Being creative and innovative, they always make decision on how to improve their products how to create new markets, how to increase consumers satisfaction or how to maximize profits. The success of their business depends on their ability to make the right decisions.

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6 distinct phases in DECISION - MAKING

1.identifying the problem2.gathering the data about the problem3.analyzing the data 4.formulating alternative solutions5.selecting the best solutions and 6.implementing the solution/ decision.

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DETERMINANTS OF Successful entrepreneurship

The Entrepreneur must possess the following managerial skills:

1. Ability to conceptualize and plan. The entrepreneur must view all the aspect of the business , such as product, price, cost, inventory.

He must be able to plan for the total operation of the business.

He has the ability to foresee future problems of his business is an excellent asset.

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2.Ability to manage others..

Management is getting things done by others.

as business grows, more people are needed. The entrepreneur must be able to organize work properly so that his employees can perform their jobs efficiently and effectively.

Good human relations and communications are very important for the entrepreneur.

By letting others achieve the objectives of the enterprise

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The entrepreneur is a generalist. When a business is still small, The owner does

everything: Clerk, salesman and manager. he should be an expert on time management. he should acquire basic training in small business

management and specialized courses in accounting, finance, marketing and personnel relations.

3. Ability to manage time and to learn.

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A real entrepreneur does not actually stop learning. He can do this my reading, attending seminars, or enrolling in college

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4. Ability to adapt to change.

Not a few individuals resist change. They stick to traditional or established practices. This is the culture of many Filipinos, particularly the unschooled.

A businessman who refuses to adapt his operations to changing needs and tastes of consumers is most likely to fail.

Entrepreneurs, being innovative or creative, quickly respond to changes for comparative advantage.

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ENTREPRENUER

BUSINESSMAN

WHICH ONE ARE YOU?

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Successful EntrepreneursDemonstrate:• a great deal of INDEPENDENCE

and SELF-DISCIPLINE;• a good measure of

SELF-CONFIDENCE;• an above-average aptitude for

DECISION MAKING andPROBLEM SOLVING;

• a propensity for RISK TAKING;• FLEXIBILITY and ORGANIZATIONAL

SKILLS;

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a great deal of PERSEVERANCE,unflagging TENACITY;

• a great CAPACITY FOR WORKand boundless ENERGY;

• a great deal of SELF-CONTROLand TOLERANCE;

• OPTIMISM and ENTHUSIASM;

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• LEADERSHIP skills and aDYNAMIC personality;

a facility for COMMUNICATION,

PUBLIC RELATIONS and SALES

OPEN-MINDEDNESS and FREESPIRITEDNESS.

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BUSINESSMAN

ENTREPRENUER one who organizes, manages, and assumes the risks of a business or

enterprise

a man who transacts business

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Some Insights

“I can buy you everything you want but I cannot buy you knowledge. The best I can do is to give you everything you need to acquire that knowledge. And that, I have given you. The rest is up to you.”“The rest is up to me” … those words hit me like a ton of bricks. “

“Belief … passion … and knowledge—a few important values that I was to bring back to the Philippines.”

“Be humble. Don’t look at the money, but rather, look at what you really want to do and the amount of learning and growth you would get.

Vivienne Tan – Daughter of Lucio Tan

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So you want to be a billionaire?

YOUPut your name here:

__________________________________THE NEXT MILLIONAIRE / WINNER

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”Commit to the LORD whatever you do, and your plans will succeed.”

Proverbs 16:3

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ACTIVITY 1

Identify and prioritize your mainreasons for starting a business;

begin with the most important (1)and end with the least important

(18).

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___ I want to be my own boss___ I want to fulfil myself, to surpass myself___ I want to take care of my future, to earn a living, to make money___ I want to realize a dream___ I want to be challenged___ I want to succeed, to win, to be recognized___ I need to have responsibilities and want to reap the benefits of the results___ I need to assert myself, to overcome obstacles___ I have ambition, I want power

___ I want independence of mind___ I want to be on top of what I do___ I want to be personally fulfilled___ I want to accomplish, to build something lasting___ I want to be happy by being unselfish___ I want to create my own job___ I have a social mission (creating jobs, providing assistance - making the world a better place for...)___ The business was inherited or is for sale___ I have no other possibilities of employment or promotion, difficult working conditions, a boring job and/or frustration resulting from working for others

Reasons for Starting a Business

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1. BE PROACTIVE. Decide what

you want out of life and get it!

The 7 Habits of HighlyEffective People 2

2. BEGIN WITH THE END IN MIND.Keep in mind how you want

people to remember you at yourfuneral.

3. PUT FIRST THINGS FIRST.Spend your time on what is

important, even if it is not whatis demanding your immediate

attention.

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4. THINK WIN-WIN. Be generous.

Find solutions that will benefit allparties.

6. SYNERGIZE.Cooperate with

others. Respect their differences.

5. SEEK FIRST TO UNDERSTAND,THEN TO BE UNDERSTOOD.

Don't just charge into aconversation. Listen until you

have understood what theother person is saying.

7. SHARPEN THE SAW.Systematically renew the four

areas of your life: physical,social/emotional, mental and

spiritual.

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Entrepreneurial Potential Assessment

Responses to statements of 1 and 2 are the following:

1, 2, 6, 8, 10, 11, 16, 17, 21, 22, 23, and 24

Responses to statements of 4 and 5 are the following:

3, 4, 5, 7,9, 12, 13, 14, 15, 18 , 19, 20, and 25

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21 to 25 - You have great entrepreneurial potential

with such potential , its surprisingly you haven’t gone into business already.

16 to 20 -shows that you have definite

entrepreneurial potential. However, your success in business could depend on the abilities you show and the resources you have available.

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11 to 15 this results puts you in an intermediate

zone. You are probably capable of going into business., but you would have to put a lot of effort and perseverance into it. Outside help and follow –up in the form of advice and encouragement would be an asset to you. Some adjustment might be also be necessary.

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6 to 10 -your entrepreneurial potential seems

fairly weak. You would certainly have to reconsider some of your opinions, attitudes, and behavior patterns.

1 to 5 - Be realistic. It would probably be

difficult for you to evolve into the business world at present. You should become seriously informed about the restraints and demands of the entrepreneur’s career.

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Thank You and God bless you.

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