Entrepreneurship - The activity of setting up a business, or businesses, taking on financial risks in the hope of

profit.
Entrepreneurial opportunities are those situations in which new goods, services, raw materials, and organizing
methods can be introduced and sold at greater than their cost of production
Entrepreneurial action is being able to assess the amount of uncertainty perceived to surround a potential
opportunity and the individual’s willingness to bear that uncertainty.
Entrepreneurial thinking individuals’ mental processes of overcoming ignorance to decide whether a signal
represents an opportunity for someone and/or reducing doubt as to whether an opportunity for someone is also an
opportunity for them
Given the nature of an entrepreneur’s decision-making environment, he or she must sometimes (1) think
structurally, (2) engage in bricolage, (3) effectuate, and (4) cognitively adapt.
Superficial similarities exist when the basic (relatively easy to observe) elements of the technology resemble
(match) the basic (relatively easy to observe) elements of the market.
Structural similarities exist when the underlying mechanisms of the technology resemble (or match) the
underlying mechanisms of the market.
Bricolage - entrepreneurs make do by applying combinations of the resources at hand to new problems and
opportunities
Effectuation process, A process that starts with what one has ( who they are, what they know, and whom they
know) and selects among possible outcomes.
Causal process - A process that starts with a desired outcome and focuses on the means to generate that outcome
Entrepreneurial mind-set involves the ability to rapidly sense, act, and mobilize, even under uncertain conditions
Cognitive adaptability describes the extent to which entrepreneurs are dynamic, flexible,
self-regulating, and engaged in the process of generating multiple decision frameworks
focused on sensing and processing changes in their environments and then acting on them.
Paranoia - Means Being Detail Oriented. This means attending to even the smallest details
because this is a major line of defense against threats.
Guardian attitude—the attitude that is required to protect the firm from potential competitor moves or other
environmental threats.
Metacognitive awareness - that is, the ability to reflect upon understand, and control one’s thinking and learning.

Comprehension questions are designed to increase entrepreneurs’ understanding of the

nature of the environment before they begin to address an entrepreneurial challenge,
Connection tasks are designed to stimulate entrepreneurs to think about the current situation in terms of similarities
to and differences from situations previously faced and
solved.
Strategic tasks are designed to stimulate entrepreneurs to think about which strategies
are appropriate for solving the problem (and why) or pursuing the opportunity (and how).
Reflection tasks are designed to stimulate entrepreneurs to think about their
understanding and feelings as they progress through the entrepreneurial process.

Entrepreneurs who are able to increase cognitive adaptability have an improved ability to:
(1) Adapt to new situations
(2) Be creative
(3) Communicate one’s reasoning behind a particular response

Entrepreneur’s self-efficacy refers to the conviction that one can successfully execute the
behavior required
Perceived desirability refers to an individual’s attitude toward entrepreneurial Action the degree to which he or she
has a favorable or unfavorable evaluation of the potential entrepreneurial outcomes.
Work history can influence the decision to launch a new entrepreneurial venture, but it also
plays a role in the growth and eventual success of the new venture.
Role model - One of the most important factors influencing entrepreneurs in their career path is their choice of a
role model.
-Role models can also serve in a supportive capacity as mentors during and after the launch of a new venture. An
entrepreneur needs a strong support and advisory system in every phase of the new venture.
Moral-support network - It is important for each entrepreneur to establish a moral-support network of family and
friends, a cheering squad. This cheering squad plays a critical role during the many difficult and lonely times that
occur throughout the entrepreneurial process.
-Individuals who give Psychological support to an entrepreneur.
Professional-support network. -This advice can be obtained from a mentor, business associates, trade associations,
or personal affiliations
-Individuals Who help the entrepreneur In business activities
Sustainable entrepreneurship is focused on pre-serving nature, life support, and community (sustainability) in the
pursuit of perceived opportunities
Entrepreneurship focused On preserving nature, life Support, and community (sustainability)
Corporate entrepreneurship - Corporate entrepreneurship is most strongly reflected in entrepreneurial activities as
well as in top management orientations in organizations.
-Entrepreneurial action Within an established organization.
The resistance against flexibility, growth, and diversification can, in part, be overcome by developing a spirit of
entrepreneurship within the existing organization.
-Corporate entrepreneurship is one method of stimulating, and then capitalizing on, individuals in an organization.
Self-renewal - is the transformation of an organization through the renewal of the key ideas on which it is built.
-It has strategic and organizational change connotations
Proactiveness includes initiative and risk taking, as well as competitive aggressiveness and boldness which are
particularly reflected in the orientations and activities of top management.
A proactive organization tends to take risks by conducting experiments;

Entrepreneurial management is distinct from traditional management in terms of eight dimensions:

(1) strategic orientation, (5) management structure,
(2) commitment to opportunity, (6) reward philosophy,
(3) commitment of resources, (7) growth orientation,
(4) control of resources, (8) entrepreneurial culture

Strategic orientation refers to those factors that are inputs into the formulation of the
firm’s strategy. We can think of it as the philosophy of the firm that drives its decision about
strategy; the way that it looks at the world and the way it looks at itself and these perceptions are the driving factors
behind the firm’s strategy.
- Focus on those factors That are inputs into the Formulation of the firm’s Strategy
Proactiveness includes initiative and risk taking, as well as competitive aggressiveness and boldness, which are
particularly reflected in the orientations and activities of top management.
Organizational innovativeness refers to product and service innovation, with an emphasis on development and
innovation in technology. It includes new product development, product improvements, and new production
methods and procedures.
Entrepreneurial Orientation toward opportunity A Commitment to taking Action on potential Opportunities
Entrepreneurial Orientation toward Commitment of Resources A focus on How to minimize the Resources that
would be required in the pursuit of a particular opportunity
-Focused on the opportunity.
Entrepreneurial Orientation toward control Of resources A focus on How to access others’ Resources
Entrepreneurial Philosophy toward rewards One that compensates employees Based on their Contribution
toward the Discovery/generation and Exploitation of Opportunity
Entrepreneurial Orientation toward Growth A focus on Rapid growth
Culture The Environment of a Particular organization
Entrepreneurial Orientation toward Culture A focus on Encouraging employees to
Generate ideas, Experiment, and engage In other tasks that might Produce opportunities
Entrepreneurial orientation toward Management structure
More organic focus—has Few layers of bureaucracy
Between top management and the customer and Typically has multiple Informal networks
Top management Commitment Managers In an organization Strongly supporting
Corporate Entrepreneurship

Leadership Characteristics of a Corporate Entrepreneur:

Understanding the environment
Being visionary and flexible
Creating management options
Encouraging teamwork
Encouraging open discussion
Building a coalition of supporters
Being persistent

Top Management Commitment – Managers in an organization strongly supporting corporate entrepreneurship.

ESTABLISHING CORPORATE ENTREPRENEURSHIP IN THE ORGANIZATION:

First step in this process is to secure a commitment to corporate entrepreneurship in the organization by top, upper,
and middle management levels.
Second, ideas and general areas that top management is interested in supporting should be identified, along with the
amount of risk money that is available to develop the concept further.
Third, a company needs to use technology to make itself more flexible
Fourth, the organization should be a group of interested managers who will train employees as well as share their
experiences.
Fifth, the organization needs to develop ways to get closer to its customers. This can be done by tapping the
database, hiring from smaller rivals, and helping the retailer.
Sixth, an organization that wants to become more entrepreneurial must learn to be more productive with fewer
resources.
Seventh, the organization needs to establish a strong support structure for corporate entrepreneurship.
Eighth, support also must involve tying the rewards to the performance of the entrepreneurial unit.
Finally, the organization needs to implement an evaluation system that allows successful entrepreneurial units to
expand and unsuccessful ones to be eliminated.
Restoration orientation - This orientation involves distracting oneself from thinking about the failure and focusing
one’s energy on addressing other (secondary) problems that have arisen as a result of the failure.
Learning from Failure
Process model of Coping with negative Emotions Involves Oscillation between a loss Orientation and a
Restoration orientation
Loss orientation An approach to negative emotions that involves Working through, and
Processing, some aspect Of the loss experience and, as a result of this Process, breaking
Emotional bonds to the Object lost
Restoration orientation An approach to negative Emotions based on both Avoidance and a
Proactiveness toward Secondary sources of Stress arising from a Major loss

CHAPTER 3
New entry refers to
(1) offering a new product to an established or new market,
(2) offering an established product to a new market, or
(3) creating a new organization

Entrepreneurial strategy represents the set of decisions, actions, and reactions that first generate, and then exploit
over time, a new entry in a way that maximizes the benefits of newness and minimizes its costs.
-collection of choices, moves ,and responses that first create a new entry

6 classifications of new entry

1. Small business : sari-sari store
2. Innovative business : pede mag enter sa market by coming up with new and innovating products (UBER is an
example)
3. Large Company : pede mag enter with Innovative skills
Kailangan risk taker ( ex. Nito is pagpapfranchise)like Microsoft, apple, samsung, McDonald’s, Jollibee
4. Imitator Entrepreneurship : enter market by launching similar product na nag eexist na din talaga sa market. Di
gagayanin talaga. You will use their idea (ex. Facebook ginaya friendster)
5. Scalable startup : entrepreneur na willing magproduce ng product na never pa nag exist (ex. Instagram,twitter,
skype)
6. Social entrepreneurship: iniintroduce through socials, ang aim mo to help society as well as generate profit ex.

Resources The inputs into the production process

Valuable(resource that permits pricing ex. Tangible goods) ,
rare(types of resources na may limitation ex gold, silver) and
inimitable ( resources na mahirap ma acquire ex. Branded bags or pabango

entrepreneurial resource The ability to obtain, and then recombine, resources

Into a bundle that is Valuable, rare, and Inimitable
Resources are the basic building blocks to a firm’s functioning and performance. A firm’s resources are simply the
inputs into the production process, such as machinery, financial capital, and skilled employees.
Market knowledge refersTechnological knowledge is also a basis for generating new entry opportunities.
Market knowledge possession of Information, technology, Know-how, and skills that Provide insight into a Market
and its customers
Technological knowledge refers to the entrepreneur’s possession of information, technology, know-how, and skills
that provide insight into ways to create new knowledge. to the entrepreneur’s possession of information, technology,
know-how, and skills that provide insight into a market and its customers.
- Basis for generating New entry opportunities

Being first can result in a number of advantages that can enhance performance. These include:
- First movers develop a cost advantage.
- First movers face less competitive rivalry.
- First movers can secure important channels.
- First movers are better positioned to satisfy customers.
- First movers gain expertise through participation.

Environmental Instability and First-Mover (Dis)Advantages

-Demand Uncertainty -Technological -Adaptation

Lead time gives the entrepreneur a period of limited competition to best prepare the firm for when competition does
increase.

Important barriers to entry are derived from relationships with key stakeholders, which may dissuade entry by
(potential) competitors. This can be done by:
- Building customer loyalties.
- Building switching costs.
- Protecting product uniqueness.
- Securing access to important sources of supply and distribution.

Market Scope Strategies - Scope is a choice by the entrepreneur about which customer groups to serve and how to
serve them. The choice of market scope ranges from a narrow- to a broad-scope strategy and depends on the type of
risk the entrepreneur believes is more important to reduce.
Narrow-Scope Strategy - A narrow-scope strategy offers a small product range to a small number of customer
groups to satisfy a particular need. The narrow scope can reduce the risk that the firm will face competition with
larger, more established firms in a number of ways.
Broad-Scope Strategy - A broad-scope strategy can be thought of as taking a “portfolio” approach to dealing with
uncertainties about the attractiveness of different market segments. By offering a range of products across many
different market segments, the entrepreneur can gain an understanding of the whole market by determining which
products are the most profitable.
Imitation Strategies -Imitation is another strategy for minimizing the risk of downside loss associated with new
entry. Imitation involves copying the practices of other firms, whether those other firms are in the industry being
entered or from related industries.
Types of Imitation Strategies
Franchising is an example of a new entry that focuses on imitation to reduce the risk of downside loss for the
franchisee. A franchisee acquires the use of a “proven formula” for new entry from a franchisor.
Managing Newness
New entry can occur through the creation of a new organization. The creation of a new organization offers some
challenges not faced by entrepreneurs who manage established firms. These liabilities of newness arise from the
following unique conditions

CHAPTER 4

Trends - often provides one of the greatest opportunities for starting a new venture, particularly when the
entrepreneur can be at the start of a trend that lasts for a considerable period of time.

7 Trends that provide opportunities

Wearable Trends Green Trend
Payments Marker Trend
Mobile Trend Health Trend
The internet of things

Method of Generating Ideas

Focus Groups - have been used for a variety of purposes since the 1950s. In a focus group, a moderator leads a
group of people through an open, in-depth discussion rather than simply asking questions to solicit participant
response.
Brainstorming - method stimulates people to be creative by meeting with others and participating in an organized
group experience
Brainwriting - is a form of written brainstorming. Brainwriting is a silent, written generation of ideas by a group of
people.
Problem Inventory Analysis - A method that stimulates people to be creative by meeting with others and
participating in an organized group experience.uses individuals in a manner analogous to focus groups to generate
new product ideas
Reverse brainstorming - is similar to brainstorming, except that criticism is allowed.

Gordon method, unlike many other creative problem-solving techniques, begins with
group members not knowing the exact nature of the problem.
Checklist method, a new idea is developed through a list of related issues or suggestions.
Free association - This technique is particularly helpful in developing an entirely new slant to a
Problem.
Forced relationships - as the name implies, is the process of forcing relationships among
some product combinations.
Collective notebook method - a small notebook that easily fits in a pocket—containing
a statement of the problem, blank pages, and any pertinent background data—is distributed.
Attribute listing is an idea-finding technique that has the entrepreneur list the attributes of
an item or problem and then look at each from a variety of viewpoints.
Big-dream approach to coming up with a new idea requires that the entrepreneur
dream about the problem and its solution; that is, the entrepreneur should think big.

Types of Innovation:
● Breakthrough Innovation
 ● Technological Innovation
● Ordinary Innovation

From a Consumer’s Viewpoint – degree of newness according to how much behavioral change or new learning is
required by the consumer to use the product.
From a Firm’s Viewpoint – New products/services are defined in terms of the amount of improved technology,
whereas market development is based on the degree of new segmentation