Introduction to Entrepreneurship Unlocking the Secrets of Wealth

Introduction to Entrepreneurship Unlocking the Secrets of Wealth Creation 30 October 2020

A. General Concepts

The ENTREPRENEUR

Our common understanding n The boss n The business owner n The risk taker n One who starts a small business n The resourceful guy?

No single definition

French word origin Entependre – an undertaker

For this course: n Walt Disney’s definition “…. to do things and make things which will give pleasure to people in new and amazing ways. …. It is magic! *From the lecture given by Larry Farrel at SBMA, August 7, 2002 and at UAP, October 30, 2009.

Walt Disney and entrepreneurship Simply amazing! Magical

Entrepreneurship involves: n MAGIC – soft issues n LOGIC – hard issues

According to George Gilder – from “The Spirit of the Enterprise”* n “It is making the world forever new. It is taking aggressive actions. ” According to Joseph Schumpeter -* n “It is destroying the old order and creating new ones. ” *From “Business as a Calling” by Michael Novak

It is about: n NEW: q q q n Business ideas Products Processes ENTREPRENEURSHIP q q A MINDSET About a forever innovating mindset

THE THREE MASTERIES FOR AN ENTREPRENEUR: n n n Mastery of Self Mastery of Opportunity Mastery of the Enterprise

Entrepreneurial Leadership Enterprise Mastery of Self Mastery of Organization Corporate Leadership

Aspects of Self-Mastery

Traits of an Entrepreneur D’s and F’s Is it better to drop out? n Is it better to get F as a grade? n

D’s n n n n n Dream Determined Details Dollar (Peso, in our case) Decision Doer Distribute Destiny Devotion Dedication

F’s n n n n n Founder Faith Focused Frugal Fast Fun Flexible Flat Forever Improving

Anatomy of the Entrepreneur The Entrepreneurial Mind Frame The Entrepreneurial Heart Flame The Entrepreneurial Gut Game

Anatomy of the Entrepreneur n What lies behind us, what lies before us, is nothing compared to what lies within us. WISDOM HEART GUTS HANDS

Self Analysis: n n Gifted minds Steely Guts q q n n Ability to intuit Courage Patriotic Hearts Hands that truly care Do I possess all of the above?

The Entrepreneur’s Brain n Let us do a brain surgery…

“I have 4 brains: left cerebral, left limbic, right limbic, Right cerebral. ”

The HBDI developed by Hermann yielded a brain dominance profile Logical Factual Critical Technical Analytical Quantitative Conservative Structure Sequential Organized Detailed Planned Visual Holistic Intuitive Innovative Conceptual Imaginative Interpersonal Kinesthetic Emotional Spiritual Sensory Feeling

PREFERRED SUBJECTS ? Arithmetic ? Algebra ? Calculus ? Logic ? Science ? Technology ? Finance ? Programming ? Accounting ? Technical Management ? Production A B ? Arts ? Geometry ? Design ? Poetry ? Architecture D ? Marketing C ? Social Sciences ? Psychology ? Dance ? Drama ? High-Skilled Sports ? People-Management

PREFERRED PROFESSIONS ? Lawyers ? Engineers ? Computer Systems Analysts ? Financial Analysts ? Technicians ? Physicians A ? Statisticians ? Bureaucrats B ? Administrators ? Bookkeepers ? Planners-Programmers ? Elementary Teachers ? Policemen ? Cashiers ? Production Supervisors ? Maintenance People ? Classical Musicians ? Entrepreneurs ? Explorers ? Artists ? Playwrights ? Scientists in R&D ? Advertising D ? Composers ? Jazz Musicians C ? Guidance Counselors ? Public Relations ? Nurses ? Social Workers ? Entertainers ? HRD ? Salesmen ? Priests

Cerebral Left mode Right mode CEO’s male or female Limbic

Cerebral Left mode Right mode Entrepreneurs Limbic

B. Forms of Entrepreneurship 1. 2. 3. Social Entrepreneurship Business Entrepreneurship Techno Entrepreneurship

1. Social Entrepreneurship

1. Social Business Mix NGO (non-profit) NGO (for-profit) Social Enterprise Social Business Enterprise CSR Profit Maximization Business (PMB) Business Enterprise

Social Entrepreneurship n “Any creative and innovative solution applied to solve social problems” (Mohammad Yunus, 2007) q q It involves social mission Profit and/or entrepreneurial processes

Banker to the poor

Social Entrepreneurship n “Search for approaches to move poor people out of poverty beyond welfare-based safety nets. ” q q q No more charities Sustainability Profits for non profits

Social Entrepreneurship n n CSR – corporate social responsibility CSV – corporate shared value q Human Nature

Social Business n The triple bottom line q q q n PEOPLE PROFIT PLANET BOP – Bottom of the Pyramid

BOP – Bottom of Pyramid A-B 9% C 20% Above poverty threshold D-E 31% Living on less than $2 per day F 40% Living on less than $1 per day

n Mother Teresa did what no other person has done before – to take care of the poor, destitute and lepers

Lance Armstrong n 7 times Tour de France champion n His real victory is with the LAF where he helps hundreds of cancer victims n

n Sir Edmund Hillary was first to conquer Mt. Everest

n Sir Edmund Hillary came back to Nepal and helped the Sherpas improve their living conditions.

Mohammad Yunus Taught Developmental Economics at the University of Chitagoong in Bangladesh. n Economics, right at the outskirt of the University, poverty was everywhere. n He found out that all that was needed by the poor was a loan of 27 chakas. That’s how the Grameen Bank started. n

Why are they entrepreneurs? n They had little or no resources at all but they survived and achieved what they wanted in life

2. Business Entrepreneurship n Business for profit

Business Entrepreneurship n It’s about the study of systems, structure, and staffing to make a large corporation stay competitive, innovative, and profitable on a sustainable basis.

The business cycle according to Larry Farrel – int’l expert on entrepreneurship Growth Start Decline Survival / Failure ENTREPRENEURIAL MANAGERIAL

No longer excellent!. . . n In 1983, there was the book In Search of Excellence by Tom Peters and Waterman. It sold 6 million copies. Then. . . Oooopppsss!!! n Something went wrong. . .

n n n 33% of the “Excellent” Companies vanished Too big to fail companies Where are they now? : Washington Mutual Bear Stearns Pacific Bank Banco Filipino

Vanishing giants Dinosaurs of the corporate world

ENTREPRENEURIAL COMPANIES n n Keeping the Sense of Mission alive as you grow Re-instilling customer/product vision in every employee Fostering high-speed innovation Making self-inspired behavior the organization standard

BUSINESS ENTREPRENEURSHIP Entrepreneur (Self) IDEA Resources TIME REALITY Opportunity

Growth Differentiation Strategic direction

Three Competencies of the Complete Entrepreneur in r ire no va sp in to r ORIGINATOR OPERATOR implementor ORGANIZER

Compelling Reasons Why We Need Entrepreneurs n n n 90% of the world’s jobs are created by entrepreneurs Source of new products and innovation In the third-world countries, the entrepreneurs keep the sagging economies alive It’s the entrepreneurs – not the central bank – that keep the economy moving Finally. . .

. . . in the Philippines n n It’s not GMA nor the government that was responsible for sheltering the Philippines against bad times. GUESS WHO? !

In the GEM report of 2006 -2007, RP is No. 2 in the world for entrepreneurial activity. n Peru is No. 1 n

RP is a HOTBED OF ENTREPRENEURSHIP! n n 4 out of 10 adult Filipinos are into business Highest in Northern Luzon – 54% Lowest in Metro Manila – 30% In the early stages, it is highest in Mindanao, at 73%

Entrepreneurship in the Philippines: Issues from a Global Perspective

Other trivia: n Battle of the sexes: q q q 51% of all businesses are started by women 55% of all businesses are run by men Of the nascent businesses, 60% are run by women

Entrepreneurial “ION” (Process) Inspirat. ION (idea) Ambit. ION Pass. ION + Perspirat. ION (past jobs) Recreat. ION (hobbies) = Idea Fruit. ION Frustrat. ION (what pisses you off) Enterprise Creat. ION Sea of Opportunity

Is Entrepreneurship easy? n We choose to go to the moon in this decade and do all the other things to get there, not because they are easy but because they are hard, because that goal will serve to measure the best of our energies and skills, because that challenge is one we are willing to accept and we are unwilling to postpone, and which we intend to win and others too. -- JFK, 1962

So you want to be a billionaire Put your name here: _________________ THE NEXT MILLIONAIRE / WINNER