Entrepreneurship is a life skill that readies a person to manage the vague and undefined

future particularly in the business environment.

Entrepreneurship is composed of collective mindsets and skillsets that can empower an

individual to create and act on opportunities of any kind for himself. Simply, there is no need
to build a business in order to think and act like an entrepreneur.

two ways of thinking about entrepreneurship:

Older view known as predictive approach considers entrepreneurship as a linear process

where there are steps to do and the results are usually predictable.

Recent view identified as creation approach sees entrepreneurship as a mindset and a

method that needs practice and used only when the future is unpredictable and not certain.

Traditional entrepreneurship is supported by the predictive approach.

Entrepreneurs using the predictive approach, identify the goals they wanted to attain and
search for available resources. This approach works best during times of ambiguity and
when there is enough information where to base decisions.

Most well-known and established companies make use of predictive approach. This is for
the reason that they have predetermined goals, their problems are clear and they are in
possession of dependable and accessible information. With these situations, big companies
can be able to analyze their current situations, identify problems, opportunities and even
provide solutions. They can easily and accurately predict any changes in the business
environment because they make use of sophisticated tools to assess historical and current
data. However, this approach is not a guarantee to success as a lot of huge companies
planned but still failed.

In contrast, entrepreneurs who use the creation approach define their goals based from the
resources available at hand. These entrepreneurs do not delay the action they wanted to
take despite scarcity of resources.

Often, small businesses always begin with creation. Nevertheless as these ventures
progress they need to gather information in the real business world in order to make
predictions for analysis. Most entrepreneurs start their ventures with a broad idea that they
feel is worth trying and most likely to succeed.

The end goal of both approaches is similar though the means toward action is
different. In fact, entrepreneurs should be encouraged to use both standpoints.

The Start of Entrepreneurship in the Philippines

Although the country has a growing average of 6% economic growth, still poverty prevalence
is beyond 20% of the total population. Entrepreneurship has become the solution to
poverty through job formation, wealth creation and social empowerment. For now, the
Philippine government sees entrepreneurship as the sole means to address the poverty
problem.
The 1987 Philippine Constitution identifies entrepreneurship as an instrument of economic
growth. The role of private enterprises in supporting fair distribution of income and wealth,
satisfying production of goods and services and escalating productivity is emphasized in
Article XII Section 1. The intention here is to raise the quality of Filipinos' lives.
The government's objective of economic development and job formation has been placed in
the supervision of the Philippine Development Plan (PDP) which strengthens the thrust on
entrepreneurship by way of trade and investment. The pursuit is on strengthening the
Philippines's competitiveness and contribute to job formation.

These days, entrepreneurship involves the capacity to see an opportunity, come up with an
idea and organize all the resources and skills and form business ventures not just locally but
internationally.

In the Philippines, the Philippine Chamber of Commerce and Industry, the agency under the
Office of the President is an advocate of entrepreneurship which formed the Philippine
Center for Entrepreneurship (PCE). So far, PCE has created the
"Go Negosyo Communities" everywhere. The academic, business and government sectors
have collaborated to form these communities. Professors, entrepreneurs, industry experts
and venture capitalists had joined hands to constantly network, mentor and cooperate to
support a feasible policy infrastructure. All "Go Negosyo" communities have their abilities to
continuously create start-up ventures.

The country has now regarded entrepreneurship as a way of thinking and not just an
economic term. These days, entrepreneurship has become a way of motivating innovative
individuals to pursue opportunities regardless of its risks.

Although the challenge for the Philippines is to provide good leadership that can help social
reforms through entrepreneurship. With this leadership, entrepreneurs can surely propel the
economy and the society in progress.

The Skills Important in Entrepreneurship

In the creation approach, entrepreneurs are able to learn through action and manage
uncertainty by developing these five important skills.

The Skill of Play

An entrepreneur with the skill of play usually allows his imagination to explore, exposes his
mind to a treasure of opportunities and potentials and is very innovative. It

The Skill of Experimentation

The skill of experimentation calls for entrepreneurs to act so as to learn. Acting to learn
means attempting to do something, learning from such attempts and structuring said
learning when the next thing similar happens. Experimentation in entrepreneurship refers to
making action. Action could be in the form of going out in the streets and gathering real time
data instead of just using Google to find information. This could be done by asking
questions, confirming assumptions and noting every detail in consideration.
The Skill of Empathy
The skill of empathy means being sympathetic with the feeling, situation, purposes, opinions
and wants of other people. Empathy is putting ones shoes in the shoes of others. Simply, it
is relating to the feelings of others when placed in a similar circumstance.
Empathy is so vital to an entrepreneur. It is significant in order to completely understand the
reality of becoming an entrepreneur. In addition, empathy is needed when evaluating oneself
in terms of the ability to be an entrepreneur.

The Skill of Creativity

The skill of creativity means being open-minded and letting loose ones ability to create,
discover opportunties and resolve problems. Based from researches, entrepreneur students
are more creative compared to students in other business courses. The intention in using the
skill of creativity is not just to discover or search for opportunities but to form them.

The Skill of Reflection

In order to make sense of the previously discussed skills, an entrepreneur should develop
the skill of reflection. Reflection organizes all the four skills mentioned here. Taking time to
reflect is the most vital skill of all skills. The discomfort handled, the feelings felt and the
knowledge possessed gives new perspectives and allow for more assessment of the results
and forming of conclusion, which can be done through refection.

There are several ways to do reflection, namely:

1. Narrative - It is describing what happened in terms of what took place, what was said and
the people involved.
2. Emotional - This centers on the feelings and the management of these feelings during a
certain situation.
3. Perceptive - It focuses on ones insights and feedbacks as well as the others in addition to
how various views, needs or inclinations affected the experience.
4. Analytical - It is rationalizing about skills and understanding obtained from an experience
and relating what has been learned to anything heard about before.
5. Evaluative - This concerns on what went well as well as what went bad or whether the
experience was useful or not.
6. Critical - This is considering the role played in a situation, the approach applied, what
could still might be done, the lessons from the experience, queries in mind and the
anticipation of the possible result.

The Truths about Entrepreneurship

There are really no shortcuts when it comes to entrepreneurship. Entrepreneurs must

understand that it is a hard commitment and there is no quick formula for success. Here are
some truths about entrepreneurship:

Entrepreneurship is Not Solely for Startups

A startup is a new company that is just starting to progress and looking for a feasible
business model. Startups are typically small and primarily funded and operated by a few
founders or one person. Traditionally, when a person starts a business, he is called an
entrepreneur. An entrepreneur forms a business from research on the feasibility of a
business idea or business model. The funding for the business usually comes from the
relatives or from the entrepreneur himself.
A business does not remain to be a startup, because it can always develop and progress
into something bigger. Being a startup is not the only track for entrepreneurs. Entrepreneurs
can be all over, from companies to franchises, to profit and non-profit organizations, to
family-owned businesses.

Entrepreneurs Do Not Have Exceptional Personality Qualities

There is really no evidence to prove that entrepreneurs possess special personality qualities
above others. Although without scientific proof, traditionally there are four recognized
qualities of an entrepreneur which are being an achiever, an influencer, a risk-taker and
open-minded for uncertainty. These days, the focus of academicians and researchers is how
entrepreneurs think and act.

Entrepreneurship can be Taught Yet Entails Practice

Nowadays, entrepreneurship is already taught in colleges and universities worldwide.
Simply, the linear process teach entrepreneurship as something [Link] reality,
however, this is not the case, since entrepreneurship is unpredictable.
Instead entrepreneurship requires a person to possess a set of skills.

Entrepreneurs are Not So Much Risk-Takers

There has been an existing stereotype about entrepreneurs that they are gamblers .
Although there is really no valid proof on this typecast about them,
this suggests that entrepreneurs take more risks compared to anyone. Entrepreneurs are
really risk-takers but they normally would make calculations first prior to taking the next step.
They usually measure every lose they are willing to take on each step of what they do. next
[Link] take every single step as lesson to learn and make use of said lesson on the

Entrepreneurs Work in Partnership More than They Compete

Most entrepreneurs learn their lessons from the shared experiences others had faced. The
support of a community of entrepreneurs with similar mindset and willing to support each
other is important. This is for the reason that no one would know about entrepreneurship
unless it has been experienced.
Working in partnership not only works with the rest of the entrepreneurs but also with target
consumers, with prospective investors and with family and friends.
Customer relationship is essential, investment requires trust and relatives and friends are
necessary as support groups. Partnership usually brings about more efficiency, additional
fresh ideas and produces ingenuity and innovation.

Entrepreneurs are More on Doing than Planning

Most people believe that any business to succeed requires a business plan.
Based on researches, not all successful companies had wrote a formal business plan.
Perhaps people would wonder how this came about. Simply, these successful entrepreneurs
had acted. They went our of the streets, talked to people, relate with customers, buzz about
their offerings whether product or service and most importantly they form a solid networking.
These successful people had really practiced being real entrepreneurs.

Entrepreneurship is Truly a Life Skill

Before, entrepreneurship was only popular during creation of new businesses. Today,
entrepreneurship has gone far beyond the ability to start a business venture. A lot of people
as well as organizations these days consider entrepreneurship as a skill that is useful in
every human's life. As a life skill entrepreneurship can offer the methodological way of
thinking, opportunity identification, specific way of problem-solving, adapting to new
situations and governing ones goals and ambitions. Said life skill is not only for
entrepreneurs but also for other professions.

Some of these life skills include:

1. Resilience - This is being able to deal with setbacks through bouncing back and refocus
after failure.
2. Agility - This is responding speedily and conclusively to adjust to dynamic changing
environment and situations, grab new opportunities and be competitive.
3. Negotiating - This is about setting boundaries, ensuring for a good relationship and
understanding that a good rapport is necessary to give any business the best chance of
success.
4. Problem solving - This concerns creating solutions from minor technical difficulties to
major financial headaches.
5. Relationship building - This involves the give and take relationship of the entrepreneur
with a supplier, investor or even his employee.
6. Mindfulness - This is the ability to disconnect from the pressure and focus on being in the
moment by techniques such as breathing and meditation to better manage ones thoughts
and feelings and escape from being burdened by them.

Types of Entrepreneurship

Entrepreneurship is very significant and also an innovative procedure that has a wide range
of activities offering new things to society as well as civilization.

Intrapreneurship
Intrapreneurship refers to encouraging people to discover high-risk, high-reward concepts
with the support of a big corporate organization.

Entrepreneurs Inside
Entrepreneurs inside is almost similar with intrapreneurship. The only difference between the
two is that entrepreneurs function inside any type of organizations such as government
agencies, non-profit organizations, religious entities, self-employed and even cooperatives,
whether they are big or small.

Buying a Franchise
A franchise is a type of license bought by an entrepreneur as the franchisee from an existing
branded Business (franchisor) so that the may do business under the name of said brand.

Buying a Small Business

the entrepreneur buys out the existing owner and takes the management and operations of
the small business. This normally involves more upfront cost and also presents less risk than
starting from zero, the new owner may be able to acquire valuable patents or copyrights, or
have the opportunity to drive an unprotective business in an exciting direction with his
expertise. Buying a small buinsess has numerous advantages. The new owner is able to
take over an operation that has already making cash flow and profits. The small busines has
an established customer base, reputation and employees who are familiar with all aspects of
the business.

Social Entrepreneurship
Social entrepreneurship means pursuing innovative applications that have the likelihood of
solving community-based problems. A lot of entrepreneurs are able to make solutions to
social problems such as water shortages, education, poverty and global warming. Social
entrepreneurs may try to produce environmentally-friendly products, serve an underserved
community, or focus on philanthropic activities. Ex. Bayani Brew

Family Business
A family business is owned and managed by members of the family that is usually handed
down from generation to generation. Entreprenurship is practiced with this type of business
through the opportunity available for each generation to be innovative in their own way.

Serial Entrepreneurs
A serial entrepreneur is an entrepreneur who constantly crops up with fresh ideas and starts
new businesses. This is different from the classic entrepreneur who only have one idea to
start with his venture, then play an important role on its daily operations. A serial
entrepreneur is a habitual one who takes the challenge of repeatedly initiating on
putting up a business. This entrepreneur give the responsibility running the operations of
each business it started once it is established and move on to other projects.

Entrepreneurship as a Method
A method is a systematic way of doing a task, while a process is a sequence of steps to
take to attain something. Usually, entrepreneurship is considered a process with steps that
could lead to a successful business. Entrepreneurship as a process focuses on planning and
making forecasts. It is said that when the steps are followed correctly with a good business
model, a new venture shall succeed. Obviously, this process may work for big companies,
however entrepreneurial ventures are just small ones.

Five effectual principles:

1. Bird in Hand - This principle of effectuation means creating solutions using the resources
available at the disposal of entrepreneurs instead of having goals in mind.
2. Affordable Loss - In order to limit the disadvantage risk, an entrepreneur should define
his affordable loss. This means only investing much that an entrepreneur is willing and can
afford to lose.
3. Crazy Quilt - This is about entering into new partnerships that can bring in new
opportunities and reduces uncertainty.
4. Lemonade - When looking for new opportunities, it is possible that entrepreneurs shall
encounter mistakes and meet surprises.
5. Pilot in The Plane - Entrepreneurs in this principle believe that the future is really
something that needs to be controlled and not try to predict.

Components of the Entrepreneurship Method

After understanding the entrepreneurship method, the next thing to know are the
components of this system.

Identify Desired Impact

In successfully forming a new venture, an entrepreneur must combine his curiosity, drive and
motivation to achieve something beyond the bounds of himself. Entrepreneurship is seldom
about profit concerns. Given that companies are formed with profit as motive, the main
objective is primarily deeper than money. Most entrepreneurs pursue what they wanted to
do, some loves being autonomous and being able to control their experiences at work.
Others, usually have strong desire to create something new to market. In the long run, profit
motive is not sustainable because entrepreneurship calls for hard work and the satisfaction
and desire come from deep inside.

Begins with Means at Hand

The current resources at hand is an important component. These resources need to be
ready for use to accomplish immediate action. "who am I", "what do I know" and "whom do I
know" are the three essential questions that when answered correctly and honestly bring
understanding about the resources at hand.

Describe the Idea Today

The desired impact and the means at hand should be combined to fully describe the idea
today. Only then that an entrepreneur could start action today with the resources he has
today.

Estimate Affordable Loss

Risk is apparently relative. High risk for one may not be the same for others.
Therefore, risk is difficult to calculate and be used as an effective criterion for
decision-making. Instead of estimating risk, entrepreneurs think about the things they are
willing to lose. These things to lose include money, reputation, time and opportunity cost.
Once the entrepreneur is able to take control of these things, he is also avoiding to make
fear and failure control him.

Reflect and Be Honest

Sometimes, an entrepreneur may have thought of giving up the business. The question is
what shall be his considerations? Once the entrepreneur no longer has the desired impact or
has exceeded his affordable loss, that he may quit. Otherwise, the entrepreneur must think
of the next step to do to sustain his venture.

Take Small Action

The first action is just a small step to get going. Each step must not be extreme but still these
can be done. Once, every step is properly calculated and the affordable loss is estimated,
the entrepreneur can control his risk.

Network and Enjoin Others in the Journey

Rather than competition, the practice of entrepreneurship is about collaboration and
co-creation. Sharing ones' ideas and enjoining others to be part of the entrepreneurship
bandwagon shall also increase the entrepreneurs resources, expand the possibilities
available as well as confirm his idea.
Build and Learn from What Has Been Learned
Every entrepreneur should evaluate his performance. Evaluating performance is improving
ones idea. At this step, nothing is right or wrong, just making things better. It is always best
to celebrate when success comes. However, when failures happen, embrace them because
of the learnings that comes from them.

Managerial and Entrepreneurial Thinking

Managerial thinking is usually best to apply during times of certainty. Managerial thinking
uses information and data as basis for decision-making. Managerial thinking is used
primarily by big and well-established companies, where goals are planned, problems are
transparent and information is reliable and reachable. With these situations, it is easier to
analyze a situation, identify issues and opportunities, diagnose and find solutions to these
issues. Planning tools to assess historical and contemporary data for forecasting are always
available and being used by big companies.

Entrepreneurial thinking on the other hand, refer to the ability to identify opportunities in
the marketplace and discover the most fitting ways and time to take advantage of them. At
times, it is basically referred to as the ability to discover and pursue the problem-solution fits.
Seeing things in a different way than the rest of the world is entrepreneurial thinking.
Entrepreneurial thinking is not essentially an intrinsic trait but it can be effortlessly
developed. It is more like a mindset that opens ones eyes to fresh learning opportunities and
helps entrepreneurs grow in their roles.

Table that differentiates between managerial and entrepreneurial thinking.

Managerial Thinking
Manage and mitigate risk
Safeguard inventions and insights
Avoid failing
Work within the confines of the current environment
Increase the bottom line

Entrepreneurial Thinking
Evaluate and embrace risk
Exchange ideas and share learnings
Fail fast and try again
Think in terms of possibilities
Create value and make a difference

Entrepreneurship Requires Deliberate Practice

Entrepreneurship method is both a mindset and a practice. There is a certain type of practice
that makes a novice entrepreneur be an expert serial entrepreneur.
Same thing with other professions. Practice is usually linked with repetition and of course
experience. Performance cannot be improved by plainly having experience nor success
could be attributed to genes. People spending lots of time repeating the same action will end
up to be experts on said act.