Entrepreneurial Process
Chapter 1: Entrepreneurship : Evolution and Revolution
- Entrepreneurs: risk takers in new venture creations- are optimistic, hard-driving, committed
individuals who derive great satisfaction from being independent. they recognize opportunities
where others see chaos and confusion. They are the aggressive catalyst for change within
market place. Their ideas, savings and investment and innovation lead to the development. They
alleviate poverty by contributing to economic growth and job creation.
- Set of characteristics for entrepreneurs
o commitment, determination and perseverance ( willingness to mortgage their house,
take a cut in pay, sacrifice family time, etc),
o drive to achieve (to excel against self-imposed standards and to pursue and attain
challenging goals),
o opportunity and goal orientation ( focus on opportunity rather than resource, structure
or strategy, setting high but attainable goals to define priorities and provide them with
measures of how well they are performing),
o initiative and responsibility ( independent and highly self-reliant, willing to put
themselves into situation where they are personally responsible for the success or
failure of the operation),
o persistent problem solving ( self-confidence and optimism to translate into the view that
the impossible just takes a little longer),
o seeking and using feedback ( quick learners and desire to judge and improve
themselves),
o internal locus of control ( believe in themselves and that they can affect the outcome),
o tolerance for ambiguity ( no concern about job security and retirement),
o calculated risk taking ( not gamblers but carefully thought-out manner for every
venture),
o integrity and reliability ( to build sustain trust and confidence from their partners,
customers and investors),
o tolerance of failure ( learn from their failure ),
o high energy level,
o creativity and innovativeness,
o vision ( they know where they want to go),
o self-confidence and optimism,
o independence and team-building.
- Entrepreneurs brings catalyst for change, independent Thinkers/Desires Autonomy, Good at
Human Relations, Opportunistic Behavior, Consolidates Resources, Risk-taking attitudes,
Aggressiveness, Confidence, Intuition, Create jobs and economic growth, social renewal and
personal development Learns from Mistake, Goal-oriented behavior/ Reality-based Actions.
- Entrepreneurship is an integrated concept that permeates an individual’s enterprise in an
innovative manner.
- Entrepreneurial means willing to take risks in order to create values.
- Entrepreneurs Types:
, o Business entrepreneurs: driven by profit motive. Seeking growth and profits within the
business world. They are constant innovators and always trying to capture larger market
shares from competitive marketplace. They create one venture after another and one
innovation after another.
o Social entrepreneurs: same characteristics as business entrepreneurs but driven by
mission and seek to find innovative ways to solve problems that are not being addressed
by the market or public sectors.
o Both seek for innovation and growth. They thrive in both small enterprise and large
organization.
o Small-business owners: capturing the opportunities then rest on their laurels because
they or the opportunities may not have the attributes that make it entrepreneurship.
Business not growing large and they prefer more stable and less aggressive approach to
run their business. Often like stable sales, profits and modest growth and keeping the
business as controllable size. They exploit existing opportunities and optimize supply
and demand in the established market while entrepreneurs exploit innovative venture
opportunities and creates new market at home and abroad.
- Entrepreneurs and national culture: characteristics of national culture and ethnicity can
promote or inhibit entrepreneurship. Social value may cause entrepreneurs to be looked up or
down upon, depending on the beliefs of a people and their predominant moral code of
behaviors. Cultural and social aspects influences the outcomes of the entrepreneurs, business
structure and business activities. For example: Confucianism has negative association with
economic development and entrepreneurs in Asia. ( Korean studies emphasize on ‘us’ rather
than ‘me’, since Korean culture emphasizes more on ‘we’, ‘passiveness’, ‘contemplativeness’
and ‘self-denial’, it cannot be expected to have high level of entrepreneurial orientation.
o Singapore low level of entrepreneurial activities because of government-linked
corporations that dominate the economy and educational system that stifles
independent thinking.
o Argument by Hofstede cultural dimensions: power distance (degree to which a culture
or ethnic group tolerates hierarchical or unequal relationships), uncertainty avoidance
( degree to which a culture or ethnic group accepts uncertainty or is willing to take
risks), individualism/collectivism ( degree of emphasis placed on individual
accomplishment rather than collectivism or group accomplishment),
masculinity/femininity and long-term orientation. For example, individualism will have
more advantages in entrepreneur because people are more motivated by self-interest
and achievement of personal goals.
Chapter 2: The entrepreneurial Process
- Enterprising versus entrepreneurial:
o Enterprising: an attitude of exploring, of developing leading and taking initatives. It is
the process of identifying, developing and bringing vision to lie, be it an innovative idea
or simply a better way of doing something. It applies for business venture as well as
political and social decisions
o Entrepreneurial: willing to take risks in order to create value and it has a ‘business;
connotation.
- The indispensable contribution of entrepreneurs:
, o Are an integral part of the renewal process
o Play a crucial role in technological change
o Are the essential mechanism by which millions enter the economic and social
mainstream of society
o Play a social role: help deliver efficient health, education and welfare services.
- The entrepreneurial mind and behavior: they have strong desire to be independent. They want
to become their own bosses and create wealth. Primary motivation: job satisfaction,
achievement, opportunities and money.
- it can also because of necessity-drive entrepreneurship.
- They usually the oldest child in the family and it contributes to self-esteem and self-confidence.
- The proportion of women is generally lower across the vast majority of nation. Usually young
age at 25-34 years old.
- The economic and cultural circumstances of a nation also play a part in influencing the decision
to enter entrepreneurship.
- The dark side of entrepreneurship: there are certain negative factors that can envelop
entrepreneurs and dominate their behavior. Those opportunist entrepreneur might adopt a flaw
strategy and fail to deliver, inventors who become entrepreneur but lack of key project
championing capabilities, empire-builder who grow too quickly and lose control, they make
mistakes, attract controversy and dishonest.
- Entrepreneurial risk:
o Financial risk: in most of the venture, individual pits a significant portion of their savings
or other resources at stake, if venture fails their money will be gone as well. They also
might be required to sign personally on company obligation that exceed their net worth.
Therefore many people unwilling to risk their savings and property to start a business.
o Career risk: the question is if their venture fail, will they able to find a job or go back to
their old job? This is the major concern to managers who have secure job with high
salary and good benefit packages.
o Family and social risk: their commitment to family and society might be lost. It can be
children who don’t have enough time with family and the possibility of permanent
emotional scars as well as old friends may vanish.
o Psychic risk: the greatest risk. They can be not able to bounce back because of the
sufferings from financial catastrophes
- Stress and entrepreneur:
o Entrepreneurial stress: it is the function of discrepancies between a person’s
expectation and ability to meet demand, as well as discrepancies between individual’s
expectation and personality. It is an inability of person to fulfill role demands, therefore
stress occurs because work demands and expectations exceed their ability to do so.
o Other than the four risks, they also must engage in constant communication activities as
interaction with customers, suppliers, regulators, lawyers, etc which can be stressful.
Because overloads of role since they need to play multiple roles ( as salesperson,
recruiter, spokesperson, etc) it require large commitment for time and energy as an
expense of family and social activities.
o There is stress coming from where they need to work alone or with the small group and
lack support from colleagues.
, o It also can be from basic personality structure: example of people who are impatient,
demanding, over strung, neglect of all aspects in life except work, constant involvement
in multiple projects, heavy workload, etc.
o Source of stress:
Loneliness: even though they have constant interaction with customers,
suppliers, etc but they would isolate themselves from them. Moreover, long
hour of work prevent them to seek comfort from family and friends. They tend
not to participate in social activities unless it provide business benefits.
Immersion in business: even though they make enough money to take part in
leisure activities, but the business will not allow for their absence as they are
married to the business. They work long hours, leaving little time for civic
organizations, recreation or further education.
People problems: they might experience disappointment, frustration in the
interaction with other people. They tend to have perfectionists and know how
they want things done.
Need to achieve: achievement brings satisfaction. Therefore they try to achieve
too much, many of them never satisfied with their work, they believe if they
slow down or stop, competitors with come and destroy everything they worked
so hard to build.
- The entrepreneurial ego:
o An overbearing need for control: strong need for control for their venture and their
destiny. Their obsession for autonomy and control may cause them to work in
structured situations only when they have created the structure on their terms. It will
have serious impact on networking in their team since they might think others could
become a threat for themselves.
o Sense of distrust: they continue scanning the environment to remain alert to
competitions, customers, government regulation. It causes them to focus on trivial
things which make them lose sight of reality, to distort reasoning and logic and to take
destructive action.
o Overriding desire for success: because they believe they are living on the edge of
existence, therefore they rise up as defiant people who creatively acts to deny any
feelings of insignificance. Sometimes the danger from their destructive action existing
that individual become more important than the venture itself
o Unrealistic optimism: extreme optimistic feelings may lead to a fantasy approach to
their business therefore they ignore trends, factor and reports and thinking everything
will turn out well.
Chapter 4: Ethical and Social Entrepreneurship:
- Entrepreneurial ethics: in the broadest sense, ethics provide the basic rules or parameters for
how society conducts any activity in an acceptable manner. More specifically, ethics represent a
set of principles prescribing a behavioral code that explains what is good and right or what is
bad and wrong at any given time. Ethics are essentially a system of moral duty and obligations.
- In Asia pacific, social and business entrepreneurs confront corruption and business crime on a
regular basis as taking value from others without contributing anything back.
Chapter 1: Entrepreneurship : Evolution and Revolution
- Entrepreneurs: risk takers in new venture creations- are optimistic, hard-driving, committed
individuals who derive great satisfaction from being independent. they recognize opportunities
where others see chaos and confusion. They are the aggressive catalyst for change within
market place. Their ideas, savings and investment and innovation lead to the development. They
alleviate poverty by contributing to economic growth and job creation.
- Set of characteristics for entrepreneurs
o commitment, determination and perseverance ( willingness to mortgage their house,
take a cut in pay, sacrifice family time, etc),
o drive to achieve (to excel against self-imposed standards and to pursue and attain
challenging goals),
o opportunity and goal orientation ( focus on opportunity rather than resource, structure
or strategy, setting high but attainable goals to define priorities and provide them with
measures of how well they are performing),
o initiative and responsibility ( independent and highly self-reliant, willing to put
themselves into situation where they are personally responsible for the success or
failure of the operation),
o persistent problem solving ( self-confidence and optimism to translate into the view that
the impossible just takes a little longer),
o seeking and using feedback ( quick learners and desire to judge and improve
themselves),
o internal locus of control ( believe in themselves and that they can affect the outcome),
o tolerance for ambiguity ( no concern about job security and retirement),
o calculated risk taking ( not gamblers but carefully thought-out manner for every
venture),
o integrity and reliability ( to build sustain trust and confidence from their partners,
customers and investors),
o tolerance of failure ( learn from their failure ),
o high energy level,
o creativity and innovativeness,
o vision ( they know where they want to go),
o self-confidence and optimism,
o independence and team-building.
- Entrepreneurs brings catalyst for change, independent Thinkers/Desires Autonomy, Good at
Human Relations, Opportunistic Behavior, Consolidates Resources, Risk-taking attitudes,
Aggressiveness, Confidence, Intuition, Create jobs and economic growth, social renewal and
personal development Learns from Mistake, Goal-oriented behavior/ Reality-based Actions.
- Entrepreneurship is an integrated concept that permeates an individual’s enterprise in an
innovative manner.
- Entrepreneurial means willing to take risks in order to create values.
- Entrepreneurs Types:
, o Business entrepreneurs: driven by profit motive. Seeking growth and profits within the
business world. They are constant innovators and always trying to capture larger market
shares from competitive marketplace. They create one venture after another and one
innovation after another.
o Social entrepreneurs: same characteristics as business entrepreneurs but driven by
mission and seek to find innovative ways to solve problems that are not being addressed
by the market or public sectors.
o Both seek for innovation and growth. They thrive in both small enterprise and large
organization.
o Small-business owners: capturing the opportunities then rest on their laurels because
they or the opportunities may not have the attributes that make it entrepreneurship.
Business not growing large and they prefer more stable and less aggressive approach to
run their business. Often like stable sales, profits and modest growth and keeping the
business as controllable size. They exploit existing opportunities and optimize supply
and demand in the established market while entrepreneurs exploit innovative venture
opportunities and creates new market at home and abroad.
- Entrepreneurs and national culture: characteristics of national culture and ethnicity can
promote or inhibit entrepreneurship. Social value may cause entrepreneurs to be looked up or
down upon, depending on the beliefs of a people and their predominant moral code of
behaviors. Cultural and social aspects influences the outcomes of the entrepreneurs, business
structure and business activities. For example: Confucianism has negative association with
economic development and entrepreneurs in Asia. ( Korean studies emphasize on ‘us’ rather
than ‘me’, since Korean culture emphasizes more on ‘we’, ‘passiveness’, ‘contemplativeness’
and ‘self-denial’, it cannot be expected to have high level of entrepreneurial orientation.
o Singapore low level of entrepreneurial activities because of government-linked
corporations that dominate the economy and educational system that stifles
independent thinking.
o Argument by Hofstede cultural dimensions: power distance (degree to which a culture
or ethnic group tolerates hierarchical or unequal relationships), uncertainty avoidance
( degree to which a culture or ethnic group accepts uncertainty or is willing to take
risks), individualism/collectivism ( degree of emphasis placed on individual
accomplishment rather than collectivism or group accomplishment),
masculinity/femininity and long-term orientation. For example, individualism will have
more advantages in entrepreneur because people are more motivated by self-interest
and achievement of personal goals.
Chapter 2: The entrepreneurial Process
- Enterprising versus entrepreneurial:
o Enterprising: an attitude of exploring, of developing leading and taking initatives. It is
the process of identifying, developing and bringing vision to lie, be it an innovative idea
or simply a better way of doing something. It applies for business venture as well as
political and social decisions
o Entrepreneurial: willing to take risks in order to create value and it has a ‘business;
connotation.
- The indispensable contribution of entrepreneurs:
, o Are an integral part of the renewal process
o Play a crucial role in technological change
o Are the essential mechanism by which millions enter the economic and social
mainstream of society
o Play a social role: help deliver efficient health, education and welfare services.
- The entrepreneurial mind and behavior: they have strong desire to be independent. They want
to become their own bosses and create wealth. Primary motivation: job satisfaction,
achievement, opportunities and money.
- it can also because of necessity-drive entrepreneurship.
- They usually the oldest child in the family and it contributes to self-esteem and self-confidence.
- The proportion of women is generally lower across the vast majority of nation. Usually young
age at 25-34 years old.
- The economic and cultural circumstances of a nation also play a part in influencing the decision
to enter entrepreneurship.
- The dark side of entrepreneurship: there are certain negative factors that can envelop
entrepreneurs and dominate their behavior. Those opportunist entrepreneur might adopt a flaw
strategy and fail to deliver, inventors who become entrepreneur but lack of key project
championing capabilities, empire-builder who grow too quickly and lose control, they make
mistakes, attract controversy and dishonest.
- Entrepreneurial risk:
o Financial risk: in most of the venture, individual pits a significant portion of their savings
or other resources at stake, if venture fails their money will be gone as well. They also
might be required to sign personally on company obligation that exceed their net worth.
Therefore many people unwilling to risk their savings and property to start a business.
o Career risk: the question is if their venture fail, will they able to find a job or go back to
their old job? This is the major concern to managers who have secure job with high
salary and good benefit packages.
o Family and social risk: their commitment to family and society might be lost. It can be
children who don’t have enough time with family and the possibility of permanent
emotional scars as well as old friends may vanish.
o Psychic risk: the greatest risk. They can be not able to bounce back because of the
sufferings from financial catastrophes
- Stress and entrepreneur:
o Entrepreneurial stress: it is the function of discrepancies between a person’s
expectation and ability to meet demand, as well as discrepancies between individual’s
expectation and personality. It is an inability of person to fulfill role demands, therefore
stress occurs because work demands and expectations exceed their ability to do so.
o Other than the four risks, they also must engage in constant communication activities as
interaction with customers, suppliers, regulators, lawyers, etc which can be stressful.
Because overloads of role since they need to play multiple roles ( as salesperson,
recruiter, spokesperson, etc) it require large commitment for time and energy as an
expense of family and social activities.
o There is stress coming from where they need to work alone or with the small group and
lack support from colleagues.
, o It also can be from basic personality structure: example of people who are impatient,
demanding, over strung, neglect of all aspects in life except work, constant involvement
in multiple projects, heavy workload, etc.
o Source of stress:
Loneliness: even though they have constant interaction with customers,
suppliers, etc but they would isolate themselves from them. Moreover, long
hour of work prevent them to seek comfort from family and friends. They tend
not to participate in social activities unless it provide business benefits.
Immersion in business: even though they make enough money to take part in
leisure activities, but the business will not allow for their absence as they are
married to the business. They work long hours, leaving little time for civic
organizations, recreation or further education.
People problems: they might experience disappointment, frustration in the
interaction with other people. They tend to have perfectionists and know how
they want things done.
Need to achieve: achievement brings satisfaction. Therefore they try to achieve
too much, many of them never satisfied with their work, they believe if they
slow down or stop, competitors with come and destroy everything they worked
so hard to build.
- The entrepreneurial ego:
o An overbearing need for control: strong need for control for their venture and their
destiny. Their obsession for autonomy and control may cause them to work in
structured situations only when they have created the structure on their terms. It will
have serious impact on networking in their team since they might think others could
become a threat for themselves.
o Sense of distrust: they continue scanning the environment to remain alert to
competitions, customers, government regulation. It causes them to focus on trivial
things which make them lose sight of reality, to distort reasoning and logic and to take
destructive action.
o Overriding desire for success: because they believe they are living on the edge of
existence, therefore they rise up as defiant people who creatively acts to deny any
feelings of insignificance. Sometimes the danger from their destructive action existing
that individual become more important than the venture itself
o Unrealistic optimism: extreme optimistic feelings may lead to a fantasy approach to
their business therefore they ignore trends, factor and reports and thinking everything
will turn out well.
Chapter 4: Ethical and Social Entrepreneurship:
- Entrepreneurial ethics: in the broadest sense, ethics provide the basic rules or parameters for
how society conducts any activity in an acceptable manner. More specifically, ethics represent a
set of principles prescribing a behavioral code that explains what is good and right or what is
bad and wrong at any given time. Ethics are essentially a system of moral duty and obligations.
- In Asia pacific, social and business entrepreneurs confront corruption and business crime on a
regular basis as taking value from others without contributing anything back.
