Entrepreneurial mind
Entrep 101: Entrepreneurial Mindset
1st Sem: AY 2-24-2025
1/14/2025 1
• Understand economic growth and development
Learning • Define entrepreneurship.
Objectives: • Understand the role of entrepreneurship in
society.
• Discuss the characteristics of entrepreneurs.
• Explain the challenges and benefits of being an
entrepreneur.
• Identify different business opportunities.
Chapter 1:
Economic growth & Economic
Development
Economic Growth
• It is the increase in goods & services produced by an economy or nation, considered for a
specific period of time.
• The rise in the country’s output of goods and services is steady and constant and may be
caused by an improvement in the quality of education, improvements in technology or in any
way if there is a value addition in goods and services which is produced by every sector of
the economy.
• It can be measured as a percentage increase in real gross domestic product
Economic Development
• It is the process focusing on both qualitative and quantitative growth of the economy.
• It measures all the aspects which include people in a country becoming wealthier, healthier, better
educated, and having greater access to good quality housing.
• Economic Development can create more opportunities in the sectors of education, healthcare, employment,
and the conservation of the environment.
• Economic Development can create more opportunities in the sectors of education, healthcare, employment
and the conservation of the environment.
• It indicates an increase in the per capita income of every citizen.
General Theories: economic growth as a natural and inevitable
process.
How Economies Economic Theories: development is a rational process brought
about when men respond to opportunities in the
Grow environment to promote their own self-interest or materials.
Socio-psychological theories: economic development as result
of seemingly economically irrational yet psychologically and
sociologically satisfying activities of enterprising men.
1. Economic development proceeds according to a master
General
plan or “Law of nature”
Explanations
Spengler (1932) – explained economic development as a
of Economic natural thing that happens to an existing culture: it is a part of
life and is something to be expected.
DevelopmenT
Herbert Spencer – Viewed society as an organism
constantly in the process of evolution. As it evolved, it
increased in complexity since new institutions developed and
the roles and functions of social institutions became
increasingly specialized. The result is economic development.
2. Economic development is brought about by an “Invisible hand”
Adam Smith (18th century) –while individuals seek to work for their own
personal goals, they unknowingly promote what is best for all. It is as if these
individuals were led to such actions by an “Invisible hand” to the interest of the
community or society as a whole.
Any society can be made to prosper with little or no intervention from the
government because economic development is brought about as a natural course
of think.
3. Economic development is brought about by
“Cultural Diffusion”
As one culture that has begun to use new techniques
interacts with another that has not been exposed to
the technique, the former is able to influence the
latter to discard old ways and adopt new ones.
4. Racial heritage determines the economic
development of a People.
Racial characteristics make some people more
energetic, thus, allowing their countries to be
far more developed than others does.
5. Climatic conditions determine the energy levels of people and in turn,
its rate of development.
Ellsworth Huntington (1915) wrote that most of the great civilizations
flourished in the tropics or the far north. His observation and studies led
him to conclude that extremes of temperature as well as high functions
of climatic conditions would have a detrimental effect on the energy
levels of people in the countries experiencing such climatic extremes
6. Challenge of the Natural Environment is responsible for rise of
Civilization.
A.J. Tonybee, a study of history (1947) – traces economic and
cultural changes to a combination of natural (geographic)
phenome and sociopsychological pressure of stimuli such as new
soil to exploit; living in a frontier position; and prejudice of
society towards a minority group.
ECONOMIC
Explanations
of Economic
DevelopmenT 1. Technology Improvements and division of labor lead to
development (Adam Smith)
2. Population changes affect development
3. Entrepreneurship is an important factor in development
Socio- • Max Weber (1904): attributed the high degrees of
economic development in the West to the Protestant
Psychological people’s emphasis on hard work as a sacred and God-
given duty and on spending money only for productive
Explanations purposes
of Economic • Work of Talcott Parsons and His Students (1951, 1956,
1958) has been used extensively by sociologists to
DevelopmenT describe the change in values held by cultures as they
evolve from traditional to modern economies.
• Individuals in Modern Society (Work of Talcott Parsons and His
Students (1951, 1956, 1958)):
.1. Unemotional
2. Be more interested in the general welfare of the community
3. Relate to others in terms of their unique qualities (ex. My old
classmate, my neighbor, my wife)
4. Be known for who they are
5. Tie up economic relationships (such as employer-employee) with all
sorts of other relationships involving kinship and political, religious and
social structures
1. Economic growth : David McClelland (1961) concluded that
among the many motives, the achievement motive does the
most in predisposing individuals to vigorous economic activity.
Psychological
2. Need for Achievement:: ) the need to do well, not so much for
factors social recognition or prestige, but for the sense of personal
accomplishment it gives an individual measured against an
internal standard of
Chapter 2: Nature of
entrepreneurship
What is entrepreneurship?
The nature of entrepreneurship
Definition:
• "entreprendre" which means "to undertake" - Richard Cantillon
• Entrepreneur-
"one who undertakes an enterprise, especially a contractor, acting as intermediary between capital and labour" - Jean
Baptiste Say
Entrepreneurship Defined
• It is the ability to determine and come up with the proper combination of resources available in the
environment and transform this into the output of either goods or services and obtain a fair profit at the
price the entrepreneur sets.
• It is the capacity for innovation, investment, and expansion in new markets, products, or techniques.
• In economics, entrepreneurship connected with land, labor, natural resources, and capital can generate a
profit.
• The entrepreneurial vision is defined by discovery and risk-taking and is an indispensable part of a
nation’s capacity to succeed in an ever-changing and more competitive global marketplace.
• Has impact on individuals.
• Provides financial opportunities.
Entrepreneurship • Has an impact on the economic well‐being of a society.
• Requires Innovation.
• Is dynamic.
The role of
entrepreneurship
in society
Global Entrepreneurship Monitor Project, a comparative international study assessing e
ntrepreneurship’s importance to economies worldwide, concluded that the correlation
between the level of entrepreneurial activity and economic growth is greater than 70%
and all nations with high levels of entrepreneurial activity have above‐average rates
of economic growth. ([Link])
Societal and Economic Benefits of Entrepreneurship
1. Job Opportunities 2. “Boost Economic Activities”
3. Introduction of new and innovative products and services. 4. Improves people's living standards
5. Disperse the economic power and creates equality. 6. Controls local wealth and balances development.
It balances the economy by distributing national income to more businesses It makes sure local resources are used properly and that
rather than to only few monopolies.
every area has an appropriate allocation or resources
7. Reduces social conflicts and political unrest. 8. Obtain economic independence and capital
How? formation.
9. Backbone of the economy
It's the force that drives innovation, product development, and creativity. Entrepreneurs also
create jobs for people who want to work in their businesses, which helps improve
productivity and keep unemployment numbers down
Overview of MSMEs in the Philippines
Classification of MSMES By Assets
Small- 3,000,001- Medium- 15,000,001-
Micro- 3M and Below
15,000,000 100,000,000
Classification of MSMES By Employment
Medium- 100-
Micro- 1-9 Small- 10-99
199
Distribution of Establishments by enterprise sizes
Distribution of Establishments by Total employment
Distribution of Establishments by Industry sector
Distribution of Establishments by Region (2017)
Rural development and decentralization of industries
Role and
Creation of employment opportunities and more equitable income distribution
Importance of Use of indigenous resources
MSMEs Creation of backward and forward linkages with existing industries including large
enterprises
Entrepreneurial development
