DON MARIANO MARCOS MEMORIAL STATE UNIVERSITYCity of San Fernando, La Union

GRADUATE STUDIES

Topic : ENTREPRENEURIAL PERSONALITY

Reporter : GENNY HABOC ALAY-AY

Professor : CEDRIC ANTHONY E. OCHOCO, Ph.D.

Definition of Entrepreneur

An Entrepreneur (ahn’tra pra nur) is a person who organizes and manages a business undertaking, assuming the risk for the sake of profit. Any person at any age who starts and operates a business is an entrepreneur.

The term was originally a loanword from French and was first defined by the Irish-French economist Richard Cantillon. Entrepreneur in English is a term applied to a person who is willing to help launch a new venture or enterprise and accept full responsibility for the outcome. Jean-Baptiste Say, a French economist, he defined an entrepreneur as "one who undertakes an enterprise, especially a contractor, acting as intermediatory between capital and labor".

People who have the ability to analyze and evaluate business opportunities.

An owner or manager of a business enterprise who makes money through risk and initiative.

What are the Roles of an Entrepreneur in Economic

Development?

The entrepreneur who is a business leader looks for ideas and puts them into effect in fostering economic growth and development. Entrepreneurship is one of the most important input in the economic development of a country. The entrepreneur acts as a trigger head to give spark to economic activities by his entrepreneurial decisions. He plays a pivotal role not only in the development of industrial sector of a country but also in the development of farm and service sector. The major roles played by an entrepreneur in the economic development of an economy are as follows:

ROLES OF ENTREPRENEURS

(1) Promotes Capital Formation:Entrepreneurs promote capital formation

by mobilizing the idle savings of public. They employ their own as well as borrowed resources for setting up their enterprises. Such type of entrepreneurial activities lead to value addition and creation of wealth, which is very essential for the industrial and economic development of the country.

ROLES OF ENTREPRENEURS

(2) Creates Large-Scale Employment Opportunities:

Entrepreneurs provide immediate large-scale employment to the unemployed which is a chronic problem of underdeveloped nations. With the setting up of more and more units by entrepreneurs, both on small and large-scale numerous job opportunities are created for others. As time passes, these enterprises grow, providing direct and indirect employment opportunities to many more.

ROLES OF ENTREPRENEURS

(3) Promotes Balanced Regional Development:

Entrepreneurs help to remove regional disparities through setting up of industries in less developed and backward areas. The growth of industries and business in these areas lead to a large number of public benefits like road transport, health, education, entertainment, etc.

ROLES OF ENTREPRENEURS(4) Reduces Concentration of Economic Power:

Economic power is the natural outcome of industrial and business activity. Industrial development normally lead to concentration of economic power in the hands of a few individuals which results in the growth of monopolies. In order to redress this problem a large number of entrepreneurs need to be developed, which will help reduce the concentration of economic power amongst the population.

ROLES OF ENTREPRENEURS

(5) Wealth Creation and Distribution:It stimulates equitable redistribution

of wealth and income in the interest of the country to more people and geographic areas, thus giving benefit to larger sections of the society. Entrepreneurial activities also generate more activities and give a multiplier effect in the economy.

ROLES OF ENTREPRENEURS(6) Increasing Gross National Product and Per Capita Income:

Entrepreneurs are always on the look out for opportunities. They explore and exploit opportunities, encourage effective resource mobilization of capital and skill, bring in new products and services and develops markets for growth of the economy. In this way, they help increasing gross national product as well as per capita income of the people in a country.

ROLES OF ENTREPRENEURS

(7) Promotes Country's Export Trade:Entrepreneurs help in promoting a

country's export-trade, which is an important ingredient of economic development. They produce goods and services in large scale for the purpose earning huge amount of foreign exchange from export in order to combat the import dues requirement.

ROLES OF ENTREPRENEURS

(8) Induces Backward and Forward Linkages:

Entrepreneurs like to work in an environment of change and try to maximize profits by innovation. When an enterprise is established in accordance with the changing technology, it induces backward and forward linkages which stimulate the process of economic development in the country.

1. Social entrepreneur

A social entrepreneur is motivated by a desire to help, improve and transform social, environmental, educational and economic conditions. Key traits and characteristics of highly effective social entrepreneurs include ambition and a lack of acceptance of the status quo or accepting the world "as it is". He is driven by an emotional desire to address some of the big social and economic conditions in the world, for example, poverty and educational deprivation, rather than by the desire for profit.

TYPES OF ENTREPRENEURS

TYPES OF ENTREPRENEURS

2. Serial EntrepreneurA serial entrepreneur is one who

continuously comes up with new ideas and starts new businesses. In the media, the serial entrepreneur is represented as possessing a higher propensity for risk, innovation and achievement. There is a growing body of work that shows that entrepreneurial behavior is dependent on social and economic factors.

TYPES OF ENTREPRENEURS3. Lifestyle entrepreneur

A lifestyle entrepreneur places passion before profit when launching a business in order to combine personal interests and talent with the ability to earn a living. He intentionally chooses a business model intended to develop and grow their business in order to make a long-term, sustainable and viable living working in a field where they have a particular interest, passion, talent, knowledge or high degree of expertise. He decided to become self-employed in order to achieve greater personal freedom, more family time and more time working on projects or business goals that inspire them. Common goals held by the lifestyle entrepreneur include earning a living doing something that they love, earning a living in a way that facilitates self-employment, achieving a good work/life balance and owning a business without shareholders.

TYPES OF ENTREPRENEURS

4. Cooperative entrepreneurA cooperative entrepreneur doesn't just work

alone, but rather collaborates with other cooperative entrepreneurs to develop projects, particularly cooperative projects. Each cooperative entrepreneur might bring different skill sets to the table, but collectively they share in the risk and success of the venture.

TYPES OF ENTREPRENEURS

5. The Manager EntrepreneurThis is the type of person who becomes

involved with startups once they have received a fair bit of funding and are just beyond the first high-risk stage. These people often call themselves entrepreneurs because they are close to entrepreneurs and have worked at startups.

TYPES OF ENTREPRENEURS

6. The Cash-flow EntrepreneurThis entrepreneur doesn’t think about

anything except money. In general that can be a good thing for an entrepreneur but some people overdo it. Entrepreneurship is not about the bottom-line but also about innovation, inspiring your team, thinking ahead and building something out of nothing.

TYPES OF ENTREPRENEURS

7. The Headlines EntrepreneurSome entrepreneurs are in it strictly for the

fame. They rush from one headline to another and are more focused on making it to the front page of the newspaper than actually doing business. Your company is doing well when you get lots of customers, make a lot of money and your investors are happy.

TYPES OF ENTREPRENEURS

8. The Better World EntrepreneurThis entrepreneur isn’t into entrepreneurship

for the money but to make the world a better place. This is an awesome goal but often quite contrary to being a good entrepreneur. Being a successful entrepreneur doesn’t mean you have to screw the world. But your first focus should be in making your company more successful and then using your success to make the world a better place. Not the other way around.

Successful EntrepreneursAccording to the Small Business Administration, successful entrepreneurs have five characteristics: Drive, which is defined as the most important attribute. Entrepreneurs can expect long hours, high stress and endless problems, as they launch a new business.

Thinking Ability, or the characteristic that encompasses creativity, critical thinking, analytical abilities and originality.

Aptitude for Human Relations. This characteristic recognizes the importance of the ability to motivate employees, sell customers, negotiate with suppliers and convince lenders. Personality plays a big part in success in this area..

Communication Skills, or the ability to make yourself understood.

Technical Ability speaks to the need of the entrepreneur to know their product and their market. They must consider the long- and short-term implications of their decisions, their strengths and weaknesses, and their competition.

Advantages & Disadvantages of

Being an Entrepreneur

Some advantages: You are your own boss Enjoy the profits from you efforts

Sense of pride in your business Flexibility in your work schedule Having unlimited opportunity to

make money. Tapping your creativity. Overcoming challenges and

finding fulfillment. Helping others. Building an entrepreneurial legacy.

Some disadvantages:• Will need to put in long hours• Need money to start• Have to keep up with government rules and regulations

• May have to mark hard decisions (hiring, firing, etc.)

• May lose money•Possibility of Failure •Unwanted or unexpected responsibilities •Unpredictable business conditions

SMALL BUSINESS

also called a mom and pop store a business that is privately owned and operated, with a small number of employees and relatively low volume of sales. Small businesses are normally privately owned . ranging from 1 - 25 employees 

SMALL BUSINESS

Typical examples include: convenience stores, other small shops such as a bakery or delicatessen, hairdressers, tradesmen, lawyers, accountants, restaurants, guest houses, photographers, small-scale manufacturing, and online business, such as web design and programming, etc.

SMALL BUSINESSAn independently owned &

operated firm, not dominant in its field

Any venture with spiritAny business you want to startAny idea you want to bring to the

marketplace

Your Chances of SuccessSome small businesses fail

Slightly more than 80% of small businesses survive their first year On average, a company will be in business about 6 years Only about 30% make it for 10 years

PERSONAL ENTREPRENEURIAL COMPETENCIES (PECs)

 The term "ENTREPRENEURIAL COMPETENCIES" refers to the key characteristics that should be possessed by successful entrepreneurs in order to perform entrepreneurial functions effectively

1. InitiativeThe entrepreneur should be able to take

actions that go beyond his job requirements and to act faster. He is always ahead of others and able to become a leader in the field of business.

 Examples Does things before being asked or compelled by

the situation. Acts to extend the business into new areas, products or services

Entrepreneurial Competencies

Entrepreneurial Competencies

2. Sees and acts on opportunities An entrepreneur always looks for and takes

action on opportunities. Examples Sees and acts on new business opportunities Seizes unusual opportunities to obtain financing,

equipment, land, work space or assistance

Entrepreneurial Competencies3. Persistence

An entrepreneur is able to make repeated efforts or to take different actions to overcome an obstacle that get in the way of reaching goals.

Examples Takes repeated or different actions to overcome an obstacle Takes action in the face of a significant

obstacle

Entrepreneurial Competencies

4. Information SeekingAn entrepreneur is able to take action on how to seek

information to help achieve business objectives or clarify business problems.

 Examples Does personal research on how to provide a product or service Consults experts or experienced persons to get relevant

information Seeks information or asks questions to clarify a client's or a

supplier's need Personally undertakes market research, analysis or

investigation Uses contacts or information networks to obtain useful

information

Entrepreneurial Competencies

5.Concern for High Quality of Work  An entrepreneur acts to do things that

meet certain standards of excellence which gives him greater satisfaction.

 Examples States a desire to produce or sell a top or better

quality product or service Compares own work or own company's work

favorably to that of others

Entrepreneurial Competencies

6. Commitment to Work Contract  An entrepreneur places the highest priority on

getting a job completed. Examples Makes personal sacrifice or expends extraordinary

effort to complete a job Accepts full responsibility for problems in completing a

job for customers Pitches in with workers or works in their place to get

the job done Expresses a concern for satisfying the customer

Entrepreneurial Competencies7. Efficiency Orientation

A successful entrepreneur always finds ways to do things faster or with fewer resources or at a lower cost.

 Examples Looks for or finds ways to do things faster or at less

cost Uses information or business tools to improve

efficiency Expresses concern about costs vs. benefits of some

improvement, change, or course of action

Entrepreneurial Competencies8. Systematic Planning

An entrepreneur develops and uses logical, step-by-step plans to reach goals.

 Examples Plans by breaking a large task down into sub-tasks Develops plans that anticipate obstacles Evaluate alternatives Takes a logical and systematic approach to activities

Entrepreneurial Competencies

9. Problem SolvingSuccessful entrepreneur identifies new

and potentially unique ideas to achieve his goals.

 Example Switches to an alternative strategy to reach a

goal Generates new ideas or innovative solutions

Entrepreneurial Competencies

10.Self-Confidence  A successful entrepreneur has a strong belief in

self and own abilities. Examples Expresses confidence in own ability to complete a

task or meet a challenge Sticks with own judgment in the face of opposition or

early lack of success

Entrepreneurial Competencies

11.AssertivenessAn entrepreneur confronts problems and

issues with others directly. Examples Confronts problems with others directly Tells others what they have to do Reprimands or disciplines those failing to

perform as expected

Entrepreneurial Competencies12.Persuasion  An entrepreneur can successfully persuade or

influence others for mobilizing resources, obtaining inputs, organizing productions and selling his products or services.

 

Examples Convinces someone to buy a product or service Convinces someone to provide financing Convinces someone to do something else that he

would like that person to do Asserts own competence, reliability, or other personal

or company qualities Asserts strong confidence in own company's products

or services

• In recruitment of staff with entrepreneurial traits/competencies

• In building new business development teams

• In personal annual reviews to encourage entrepreneurial behaviours

• In training and coaching• In developing better organisations to

grow businesses and be globally competitive

How to use Entrepreneurial competencies in business?

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