Introduction to EntrepreneurshipElective Subject at Ateneo GSB

Introduction to Entrepreneurship

Lecture v.3

Elective subject at Ateneo GSB

Common understanding of entrepreneur

•The boss•The business owner (Unternehmer)

•The smart guy•The business founder

Origin – entreprendreundertaker

The high batting average (success rate) disproves

this stereotype

Some definitions

“Making the world forever new” – George

Gilder

“Creative destruction” by Joseph Schumpeter

“Entrepreneurship disrupts, upsets

disorganizes”

Joseph Schumpeter’s book, Capitalism, Socialism, and Democracy, proposes that America be transformed

through a process of "creative destruction."

“Theory of Economic Dynamics”

“Shifts economic resources out of lower

into area of higher productivity and greater

yield” – J.B. (a Frenchman in 1800s)

• Walt Disney’s definition

“….to do things and make things which will give pleasure to people in new and amazing ways. ….It is magic!

*From the lecture given by Larry Farrel at SBMA, August 7, 2002 and at UAP, October 30, 2009.

It is “MAGIC” – Walt Disney

SIMPLY AMAZING!

Entrepreneurship involves:

• MAGIC – soft issues • LOGIC – hard issues

Definition by Timmons

“Creating something from practically nothing”

“Doing something instead of just talking”

“Creating new products and services with

resources that one has no control of” - HBS

“Adventure into the unknown, of what is yet

to be”

“Finding new business opportunities;

expansion of existing business” – Carl Voigt

of USC

“Creating new products and service” – Dr. Ed

Morato

“Being bold and audacious” – (walang hiya) - Atty Christian

Gerona – CEO Manship“maabilidad, maparaan”

Atypical of Kondratieff Cycle

1. What accounts for creation of more than 40 million jobs in US in the 1980s?

2. High technology?

3. But that meant the start

of stagnation under the

Kondratieff cycle;

Answer:

The growth in low technology ventures

Interesting Topics:• Creativity

• Innovation

• Invention

• Imitation

• Entrepreneurship

The driving force behind international finance –

capitalist entrepreneurship

–”World is curved”

Hedge funds, mergers and acquisitions are the driving

force behind new businesses, efficiency, processes, innovation

The US Dollar is still the trading and currency of

choice. and capital destination because of perception of US as a

entrepreneurship/innovation haven

International entrepreneurship:

OutsourcingOffshoring

“Fourth sector” - PPP

Characteristic of Entrepreneurial Business

1.Changing

2.Disruptive

3.Compelling

4.Unique

Types of entrepreneurship:

businesssocialtechno

corporate

Is traditional capitalism now

dead?

The rise of:

CSV – Michael PorterSocial business - Mohammad Yunus

Michael Porter

Grameen Bank

Entrepreneuralism

“Every generation needs a revolution” –

Thomas Jefferson

How to achieve entrepreneurship? - Larry

Farrell

1. High speed of innovation2. Self inspired behaviour3. Mission – customer4. Vision – product market

It is no longer the skill/innovation DNA that

counts in business success –speed does!

It is about new ideas and products

Innovation

Not just about new ideas; it is about new

values

From Say: resources from areas of low value to area

of higher value

Innovation and creativity

Creativity and art

Value of entrepreneurs to economy and society

1. Creation of new products and services

2. Wealth/value creation

3. Fights poverty via job creation

4. Foot the bill of the government; pay the taxes

Entrepreneurship – a mindset, an attitude,

even the heart and soul of the entrepreneur

From that of dependency and patronage/bondage

To that of dignity and independence

Are we truly free?

We need more entrepreneurs!

Are entrepreneurs:

born?made?

“swerti” (lucky)

Traits of Entrepreneurs

Failing marks are birthmarks of

entrepreneurs - Ds and Fs

D’s

• Dream• Determined• Details• Dollar (Peso, in our case)• Decision• Doer• Distribute• Destiny• Devotion• Dedication

D’s

F’s

• Founder• Faith• Focused• Frugal• Fast• Fun• Flexible• Flat• Forever Improving

F’s

HeartsHandsGuts

Minds of entrepreneurs

Anatomy of the Entrepreneur

The Entrepreneurial Mind Frame

The Entrepreneurial Mind Frame

The Entrepreneurial Gut Game

The Entrepreneurial Gut Game

The Entrepreneurial Heart Flame

The Entrepreneurial Heart Flame

Anatomy of the Entrepreneur

WISDOM

HEART

GUTS

What lies behind us, what lies before us, is nothing compared to what lies within us.

HANDS

Self Analysis:

• Gifted minds

• Steely Guts– Ability to intuit– Courage

• Patriotic Hearts

• Hands that truly care

Do I possess all of the above?

4 brains thinking A – logicalB – doing C – emotionalD – intuitive

The HBDI developed by Hermann yielded a brain dominance profile

Logical Factual Critical

TechnicalAnalytical

QuantitativeInterpersonalKinestheticEmotionalSpiritualSensoryFeeling

PREFERRED SUBJECTS Arithmetic Algebra Calculus Logic Science Technology Finance

Programming Accounting Technical Management Production

Arts Geometry Design Poetry Architecture Marketing

Social Sciences Psychology Dance Drama High-Skilled Sports People-Management

A

B C

D

PREFERRED PROFESSIONS Lawyers Engineers Computer Systems Analysts Financial Analysts Technicians Physicians

Statisticians

Bureaucrats Administrators Bookkeepers

Entrepreneurs Explorers Artists Playwrights Scientists in R&D Advertising

Guidance Counselors Public Relations Nurses Social Workers Entertainers HRD

A

B C

D Composers Jazz Musicians

Planners-Programmers Elementary Teachers Policemen Cashiers Production Supervisors Maintenance People Classical Musicians

Salesmen Priests

Peter Senge – Fifth discipline

3 disciplines that need to be developed in

entrepreneurs

1. Personal mastery2. Mental models

(attitudes)3. Systemic thinking

Personal Mastery

Mental Models

Systemic Thinking

Personal mastery by Dr. Ed Morato

1. Learning to think2. Learning to do3. Learning to feel4. Learning to intuit5. Learning to lead6. Learning to communicate7. Learning to be

Think

Feel

Is entrepreneurship easy?

It is rigorous, demanding, and a discipline!

It is hard!

JFK message on getting man on the moon

“We choose to go to the moon in this decade and do the other things, not because they are easy, but because they are hard, because that goal will serve to organize and measure the best of our energies and skills, because that challenge is one that we are willing to accept, one we are unwilling to postpone, and one which we intend to win, and the others, too.”

Rewards and failures are in entrepreneurship

Only in entrepreneurship can

you become a millionaire/billionaire!

Do you want to be a billionaire?

I want to be a billionaire! (Please put the target date

and sign your name)

_________________________(Your Name)

Thank You!

By:

Prof. Jorge U. Saguinsin

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