Chapter II
Entrepreneurship as a process and
approach
Contemporary Views
Socio-Economic Benefits Prepared by:
Larianne Nyxa T. Quilala
Instructor, UNP-DSSP
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Contemporary ○ It is worth pointing out that while the early thinking on
Views entrepreneurship primarily focused on the entrepreneur as an
individual, it has become necessary to also consider the
of environment where entrepreneurs operate as much as their
Entrepreneurship personal traits come into play.
○ The early thinking seems to suggest that entrepreneurship is
something remarkable that is only undertaken by talented
individuals—people of high ingenuity, big risk- takers and those
determined to be their own bosses. This may not reflect today’s
thinking.
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Contemporary ○ Entrepreneurship in contemporary behavioral science focuses on
Views the individual, the process and the individual’s freedom of
choice. Focusing on the individual is about the earlier behavioral
of entrepreneurship research, which unearthed the characteristics of
Entrepreneurship the entrepreneur.
○ Focusing on the process shows the relationship between the
environment and the behavior of the individual. For instance,
individuals with entrepreneurial parents tend to pursue
entrepreneurial careers to a larger extent than others, which can
be explained with the help of social learning models.
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Contemporary ○ Focusing on the individual’s freedom of choice shows that new
Views businesses are started by individuals choosing to start them. This
means that the psychologically oriented entrepreneurship
of research has also taken an interest in the individual’s intentions
Entrepreneurship and choices when starting a business.
○ The contemporary or modern perspective of entrepreneurship or
entrepreneur should examine the entrepreneurial spirit, not only
as the expression of unusual individuals, but also as the product
of an environment or culture that encourages and supports
people in their efforts to launch new ventures.
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Contemporary ○ This view presupposes that more people would embark on new
Views ventures if they were given the right support. Although it
remains critical for entrepreneurs to identify opportunities,
of allocate resources and create value through innovative solutions,
Entrepreneurship this is only possible in an environment that promotes
entrepreneurial culture and nurturing of new ideas.
“
Entrepreneurship as an Approach
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The entrepreneur considers the business opportunity as a chance to solve the problem
rather than solving the problem itself. This further gives an emphasis to the relationship
between entrepreneurship and economics. The problem refers to the so-called “The
Economic Problem” which is scarcity. To deal with this economic problem, we must use
efficiently and effectively the limited resources to satisfy human needs and wants. In
this case, the job of entrepreneurs is becoming more significant. They should be able to
scan the environment, identify opportunities, generate ideas, create something
different, and venture into economic activities that are beneficial to the socio-economic
development of the country.
.
“
Entrepreneurship as a Process
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On the other hand, entrepreneurial process is supported by two factors according to
Albert Shapero:
1. Initiative: An individual or group takes the initiative. This may refer to the
entrepreneurial attributes an individual need to work for the available resources.
2. Organization: Resources are brought together in organization to accomplish some
objective (or the resources in some organization are recognized).
.
Socio-Economic
Benefits
of
Entrepreneurship
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1. Entrepreneurship creates employment and promotes self-help.
The existence of business activities influences employment. Business estab
lishments need people to work for them. Through entrepreneurship, the spirit and
culture of self-help, self-reliance, and self-sufficiency among citizens of nations is
addressed.
2. Mobilizes capital.
Venturing into business means releasing or mobilizing capital that would fire
up the economy.
3. Empower individuals.
The real indicator of economic well-being among citizens and the masses are
in some ways gauged by the amount of financial resources that every citizen
accumulates.
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4. Entrepreneurship improves the quality of life.
People need to work in order to survive, attend to their needs, and satisfy their
wants.
5. Entrepreneurship contributes to a more equitable distribution of income.
With more entrepreneurial activities provided to the people in the country sides,
natives have more work opportunities thus, discouraging them from resettling in
other places.
6. Entrepreneurship utilizes resources.
We may use our own natural resources, and process and convert them to more
useful things.
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7. Entrepreneurship brings social benefits through the government.
The resources collected by the government are given back to the people in the
form of services, infrastructure projects, school buildings, and maintenance of
peace and order.
8. Enhance national identity and pride.
It is not only the entrepreneur that directly benefits from his/her
entrepreneurial endeavors, but the country also takes pride in the honor that goes
with it.
9. Enhance competitive consciousness.
Innovation, being the essence of entrepreneurship is a catalyst to a
consciousness and culture of competition, which, in the long term breeds quality
and global competitiveness.
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References
Books:
Asor, W. 2009. Entrepreneurship in the Philippine Setting. Quezon City: Rex Bookstore
Kuratko, D. 2011. Entrepreneurship: An Introduction. Pasig City: Cengage Learning Asia
Pte Ltd.
Website:
[Link]
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THANK YOU
and
HAPPY LEARNING!
“So whether you eat or drink or whatever
you do, do it all for the glory of God.”
1 Corinthians 10:31, NIV