Entrepreneurial Management
Entrepreneurial Management
Entrepreneurial Management
ENTREPRENEURIAL MANAGEMENT
Learning Outcomes
In late 19th and early 20th century, Entrepreneurs are not always associated with
the management. The entrepreneur organizes and manages an enterprise for
personal gain. The materials consumed in the business, for the use of the land, for
the services he employs, and for the capital he requires
In 21st century, Entrepreneurs are known as a hero for Free Enterprise market.
Entrepreneur of the century created many products and services and is willing to
face a lot of risks in the business.
EVOLUTION OF ENTREPRENEURSHIP
IN THE PHILIPPINES
Entrepreneurship has existed in the Philippines.
They started business transactions through the barter system – goods and services were
means of exchanges.
The small and medium enterprises (SMEs) became the embodiment of entrepreneurship
in the country.
The SME development regulatory framework and policies started in 1935 when the
1935 Philippine Constitution first recorded the national commitment to economic success
through industrial and technological growth.
The SME sector was given emphasis in the Philippine Development Plan (1972-1976).
EVOLUTION OF ENTREPRENEURSHIP
IN THE PHILIPPINES
1987 Philippine Constitution – reinforced the commitment for the development of the private sector
and provided for a wide range of government reforms and reorganizations.
Magna Carta for Small Enterprises is the landmark legislation which reflects the current government
policy to foster a dynamic SME sector, particularly rural and agricultural-based manufacturing ventures.
Republic Act 7882, the Act Providing Assistance to Women –special role of women in development and
supports women entrepreneurs who are engaged in the manufacturing, processing, service and trading
businesses.
Lloyd Shefsky, in his book, Entrepreneurs are Made Not Born, defined
entrepreneur by dividing the word into 3 parts: Entre means to enter, Pre means
before, Neur means nerve center.
This is made possible because the surviving enterprises are responsible for
providing the following:
1. products and services for customers producers;
2. employment;
3. taxes;
4. demand for suppliers' products and services; and
5. training facilities for future entrepreneurs.
In the attempt to make profits, the entrepreneur performs the
following specific functions:
1. to supply the necessary capital;
2. to organize by buying and combining inputs like materials and labor;
3. to decide on the rate of output, in the light of his expectation about
demand; and
4. to bear the risk inherent to the venture.
FOUR MAJOR STAGES OF ENTREPRENEURSHIP
The late growth stage is the final stage before the new venture matures into a stable
enterprise.
RISKS OF ENTREPRENEURSHIP
There are several potential risks that an entrepreneur may face in opening up their
own business:
●Financial Risk - they need funds and careful auditing skills along the process.
If not being cautious, the business may go bankrupt.
●Strategic Risk - strategies may easily be outdated because of the fast-paced
culture and lifestyle we have, what trends today may not be the same tomorrow.
●Technology Risk - the reality that every company needs technology to run,
promote, operate, and manage their business in a technological-driven world.
●Market Risk - the changing and unpredicted shift of the market’s demand and
supply may highly affect how an entrepreneur runs their business.
RISKS OF ENTREPRENEURSHIP
●Competitive Risk - the reality of the competitors in the market share, and the
acceptance that some of them are better and some are not, but giving enough
focus on how to do better or extra than them is also a challenge, struggle, and risk.
●Reputational Risk - it is about the challenge and risk of meeting the customer’s
expectations of the product or service an entrepreneur offers. It is solely about the
company’s image, but the value it drives and gives to its consumers.
●Environmental, Political, and Economic Risk - this sphere is about what an
entrepreneur cannot control within his surroundings that can affect his/her
business. Things such as wars, earthquakes, economic recessions, inflation, and
typhoon
REWARDS
There are three major biggest rewards of starting own business:
●Personal Freedom - simply means you are in control to do what you love, what
inspires you, to execute your creativity, to choose who you work with, and manage
your vision for the company.
●Financial Opportunity - to have your own passive income and commissions
flowing to your pocket. To manage the finances based on what is more important
to you as of running the business. Learning to be responsible and
accountable for every small or big monetary reward.
●Ownership - it is different from being self-employed or freelance, starting an
own business means creating a different entity within, outside, and like us. It does
not only give customers, but also business partners in negotiations, sponsorship,
and market community. It can also be passed on to the next generation, help those
in need of jobs, and make something diffoffered.
Limiting Factor for
Factors of Production Economic Reward
Rewards Received
Both need entrepreneurial action for start-up, but the small business
venture tends to stabilize at a certain stage and grows only with
inflation.
Small business owners are individuals who establish and manage
their businesses for the principal purpose of furthering personal goals
and ensuring security. A small business is therefore any business that
is independently owned and operated, but is not dominant in its field
and does not engage in any new marketing or innovative practices