ENTREPRENEURIAL

MANAGEMENT
Collated and Prepared by :
JEROME A. LOBOS
Special Lecturer
ENTREPRENEURIAL MANAGEMENT
MODULE 1 HISTORY AND EVOLUTION OF ENTREPRENEURSHIP

MODULE 2 ENTREPRENEURSHIP: DEFINITION AND CONTEXT

MODULE 3 INSIDE THE ENTREPRENEUR’S MIND

MODULE 4 THE ENTREPRENEUR: TRAITS AND FUNCTIONS

MODULE 5 ENTREPRENEURIAL LEADERSHIP AND STRATEGY

MODULE 6 THE ENTREPRENEURIAL PROCESS

MODULE 7 CREATING A BUSINESS PLAN

MODULE 8 THE PITCH: HOW TO PRESENT YOUR BIG IDEA

 MODULE 1
HISTORY AND EVOLUTION
OF ENTREPRENEURSHIP
MODULE OVERVIEW
This module uncovers the evolution and traces the development of
entrepreneurship since the dawn of history. We will take a trip down
memory lane and revisit the notable creators of the past that
significantly shaped our economic landscape - from the ancient
hunters and merchants to the business giants during the four
industrial revolutions - and see what we can take away as potential
entrepreneurs in today’s time.

LEARNING OUTCOMES
After finishing this module, the students should be able to:
Understand the history and evolution of entrepreneurship
Gain insights from past entrepreneurs
Learn the essential theories of entrepreneurship
The Beginnings of Trade

Traders and merchants were known to be the original entrepreneurs.

Even 20,000 years ago, entrepreneurship already occurred among tribes
through exchanging goods. The first known instance of humans trading
comes from New Guinea where locals exchanged obsidian, a black
volcanic glass used to make hunting arrowheads for other needed goods.

Industrial Revolutions and their impact on Entrepreneurship

First Industrial Revolution: “Mechanized Production”

The First Industrial Revolution took place from the 18th to 19th
centuries in Europe and North America. It was a period when mostly
agrarian, rural societies became industrial and urban. The iron and
textile industries, along with the development of the water wheel and
the steam engine, played central roles in the Industrial Revolution.

James Watt, the Scottish inventor behind steam engine, transformed

the production of electricity, opening the door for the mechanization
of sectors such as transportation, mining, and textiles. Because of the
efficiency and versatility of the steam engine, firms were able to
expand and achieve higher productivity and mass manufacturing.
New markets were opened up, the economy grew, and entrepreneurs
in a variety of fields flourished as a result of this manufacturing boom.
Watt’s ingenuity also cleared the path for subsequent developments
in transportation, such as the creation of steamboats and locomotives,
which further linked international markets and increased trade.
Second Industrial Revolution: “Mass Production”

The Second Industrial Revolution took place between 1870 and 1914,
just before World War I. It was a period of growth for pre-existing
industries and expansion of new ones, such as steel, oil and electricity,
and used electric power to create mass production. Major
technological advances during this period included the telephone,
light bulb, phonograph, and the internal combustion engine.

Thomas Edison was an influential inventor and entrepreneur during

the Second Industrial Revolution, best known for his development of
the electric light bulb and the establishment of electric power
generation systems. Edison’s innovations led to the widespread
adoption of electricity in homes and industries, enabling mass
production and transforming daily life.

Third Industrial Revolution: “Automation”

The Third Industrial Revolution or the Digital Revolution, refers to the

advancement of technology from analogue electronic and
mechanical devices to the digital technology available today.
Advances during this time include the personal computer, the
Internet, and information and communications technology. Some
jobs were replaced by computers, but new jobs were also created
such as software and hardware engineers.

Bill Gates, the co-founder of Microsoft, a company that has played a

pivotal role in the development of personal computers and software.
Gates entrepreneurial vision and technological innovation have driven
the global economy, and the way we live, work, and interact with the
world.
Fourth Industrial Revolution: “Connectivity”

The Fourth Industrial Revolution builds on the Digital Revolution,

representing new ways in which technology becomes embedded
within societies and even the human body. This era is marked by
emerging technology breakthroughs in a number of fields, including
robotics, artificial intelligence, nanotechnology, quantum computing,
biotechnology, Internet of Things (IoT), decentralized consensus, 3D
printing, and autonomous vehicles. The biggest impact of the Fourth
Industrial Revolution is to improve the quality of life, reduce inequality
of the world’s population and raise income level.

Jeff Bezos, the founder of Amazon, has been at the forefront of the
Fourth Industrial Revolution through its use of artificial intelligence,
automation, and the Internet of Things (IoT). Amazon’s innovative
approach to e-commerce, including predictive analytics and smart
supply chain management , has transformed retail and logistics
industries.

The list of notable entrepreneurs could go forever, but what can we

take away from this? In all cases, the inventions made something
quicker, faster, and more efficient. This only proves that the
possibilities are endless and the market is wide open, and it’s highly
likely that some of the most exciting ideas have yet to be discovered.
But whatever areas that today’s entrepreneurs venture into, their
goal won’t be so different to those early tribes bartering with
volcanic rock, to Henry Ford making his first cars, or Bill Gates
creating an operating system that would revolutionize personal
computing. It’s about solving a customer problem, or like Steve
Jobs, offering something they didn’t even know they wanted.

The Fourth Industrial Revolution is still underway and has yet to be

fully written, it’s upon us to fill in the pages with our own, unique,
big ideas.
The Development of Entrepreneurship Theories

The development of entrepreneurship theories can be traced back to

some of the earliest writers about the economy. Some of the key writers
on the topic include Cantillon, Schumpeter, and Kirzner. Throughout the
development of entrepreneurial theory, some of these have remained
consistent. These include the entrepreneur as someone who can innovate
and create jobs for themselves and for others. They are also willing to take
risks for reward and can add value to organizations.

Cantillon

Cantillon (1755) was one of the first writers to introduce the concept of
entrepreneurship. He views that anyone, regardless of their social status,
could be an entrepreneur. His theories include:
Entrepreneurs are separated from those with a fixed income
Someone who could predict consumer demand and engages in
market in exchange for profit
Entrepreneurs are agile at decision-making in the face of uncertainty

Schumpeter

Schumpeter (1934) identified creativity and innovation as an important

element in entrepreneurship. The entrepreneur role in this process is one
of “creative destruction” as they bring resources together to create new or
better products or services. The innovations described by Scumpeter
include the following:
New product or an improvement in quality in an existing product
New method of production
New market
New source of materials
New form of organization in the industry
Kirzner

Kirzner (1973), an Australian Economist, said that entrepreneurship is

about seizing opportunities and supplying resources lacking in the
marketplace. He identified entrepreneur as being “alert” to opportunities
for making a profit.

He suggested that this alertness depends partly on some of the personal

attributes of the individuals such as stamina, motivation, creativity, and
tolerance of risk. These personal attributes can help entrepreneurs find
new solutions to customers’ needs and to develop new products or
services that do not currently exist.
 MODULE 2
ENTREPRENEURSHIP:
DEFINITION AND CONTEXT
MODULE OVERVIEW
This module will equip you with the core foundations of
entrepreneurship - from its definition, importance, risks and rewards
to its different types. This will hep you understand the role of
entrepreneurship as a driver of economic growth and nation-building.

LEARNING OUTCOMES
After finishing this module, the students should be able to:
Define Entrepreneurship
Explain the Importance of Entrepreneurship
Understand the Risks and Rewards of Entrepreneurship
Distinguish the different Types of Entrepreneurship
Definition of Entrepreneurship

Entrepreneurship comes from the French word entreprende which

means “to undertake”. It is the process of creating something new with
value by devoting time and effort, applying the essential knowledge and
skills, taking on financial risk and receiving the resulting rewards of
monetary and personal satisfaction and independence.

While entrepreneurship is an act of creating and delivering something

with value, the person who puts all the resources together to create a
unique product or service is called the Entrepreneur, and the outcome or
the actual business is known as Enterprise.

Importance of Entrepreneurship

Entrepreneurship acts as an economic force of a country. As

entrepreneurship stimulates creativity and innovation, businesses come
to life, which generate jobs and opportunities to people.

When people acquire economic power, their buying capacity increases

which leads to more spending. As a result, businesses earn more profit,
thrive, and sustain their operation.

More income and spending means more collection of taxes for the
government. When the government collects more taxes, this enables
them to fund infrastructure projects, which develops and connects
communities. When communities flourish and become accessible, this
attracts more investors to enter new markets and create more businesses,
and the cycle continues.
Risks and Rewards of Entrepreneurship

Risks

There are several potential risks that an entrepreneur may face in opening
up their own business. Among these risks are the following:

Financial Risk. This is a risk that the entrepreneur may incur losses
and not recover the capital invested. Running a business does not
guarantee return of investment, especially on the early years of its
operation or without proper and timely auditing of financial
statements.

Strategic Risk. With emerging lifestyle and fast-changing culture in

the market, current strategies and systems may go outdated. Failing
to keep up with trends may cause your business to die naturally.

Technological Risk. In a high-tech world, technology may make or

break your business. Not taking advantage of different technologies
relevant to your business may cause your operation to be inefficient.

Market Risk. No entrepreneur can serve everyone, choosing a target

market is important to serve the right customers and strongly meet
demands with the products and services that you can offer.

Competitive Risk. Similar concepts may exist in the same industry

that you are in which can create competition. This competition
challenges entrepreneurs to constantly improve their products to stay
in the same place.

Reputational Risk. This is a risk that a business may tamper their

image should they overpromise and fail to deliver what their products
and services commit to their customers.
 Environmental Risk. This includes fortuitous events such as
earthquakes and typhoons that may interrupt operations and destroy
physical structures of your business. Having a contingent plan is
necessary to adapt and easily bounce back during these times.

Political Risk. This pertains to political pressures and corruption that

may inadvertently cause an unfavorable effect to your business.

Economic Risk. Inflation, economic recession, and high tax rates are
among the economic risks that may pose a threat to your enterprise.

Rewards
While there are a lot of risks to bear in starting a business, there are also
promising rewards that are in store for entrepreneurs. To wit:

Personal Freedom. Being your own boss is one of the biggest rewards
of being an entrepreneur. You have the option to take full control of
your time and let your business work for you.

Unlimited Income Potential. While there is no guarantee of return of

investment in business, there is also a possibility of earning a limitless
income from your business.

Ownership and Legacy. With enormous courage and greater risks

that comes with starting and sustaining a business, there is an
undeniable pride in being an entrepreneur. And unlike employment,
entrepreneurs can leave their businesses as their legacy to their
successors.

Positive Impact and Fulfillment. More than the monetary rewards,

entrepreneurs find greater fulfillment in helping people through job
creation and improving the quality of life through the value that their
products and services offer.
 Work-Life Balance. One of the perks of being an entrepreneur is
finding a source of income that still allows you to do the things you’re
passionate about, to travel, and to spend time with your loved ones,
anytime you want.

Growth and Learning. With countless challenges, various people to

meet, and all the times that you will be pushed to your limits,
entrepreneurs certainly grow and build strong characters in business.

Being an entrepreneur is not easy, but armed with courage, hard work
and a relentless pursuit to turn visions into reality, we can improve lives
and change the world for the better, one business at a time.

Types of Entrepreneurship

Traditional Entrepreneurship. Focuses on starting and running a

business with the primary goal of generating profit. These businesses
typically provide goods or services in exchange for money, and success
is measured by factors like revenue, market share, and profitability.

Social Entrepreneurship. Social entrepreneurs aim to solve social or

environmental problems while also generating revenue. They prioritize
societal impact over profit maximization.

Serial Entrepreneurship. Also known as the “Hustlers”, they aren't

content with just one business idea. Serial entrepreneurs are driven by
a constant stream of new ideas and the challenge of building
something successful from the ground up.

Corporate Entrepreneurship. Also known as intrapreneurship, flips

the traditional model. Instead of individuals venturing independently,
it's about employees within an established organization who act
entrepreneurially. Intrapreneurs identify and develop new ventures or
projects within their existing company.
Imitative Entrepreneurship. The process of replicating or imitating an
existing business model, product, or service in a new market or
context. Instead of creating something entirely new, imitative
entrepreneurs identify successful business ideas, products, or services
that have proven effective elsewhere and adapt them to their
circumstances.

Tech Entrepreneurship. Building businesses around innovative

technology products or services. These entrepreneurs use technology
to address problems, create new markets, and disrupt established
industries.

Green Entrepreneurship. Environmentally sustainable products or

services, promoting eco-friendly practices and reducing carbon
footprints. Some examples of green entrepreneurship include
renewable energy companies, sustainable fashion brands, zero-waste
lifestyle businesses, and urban farming.

International Entrepreneurship. International entrepreneurship

involves conducting business operations across national borders,
catering to diverse markets, and adapting products or services to
different cultural, economic, and regulatory environments.

Scalable Startup Entrepreneurship. These ventures are driven by the

ambition to become industry titans, achieving explosive growth in a
short period. They identify significant gaps in large markets and attack
them with innovative solutions, whether it's a groundbreaking tech
product, a revolutionary business model, or a completely novel way of
doing things.

Small Business Entrepreneurship. Small business entrepreneurship is

the backbone of many communities and a fundamental driver of local
economies. These entrepreneurs establish and operate small-scale
businesses, often serving a specific customer base within a particular
geographic area.
Non-Profit Entrepreneurship. Non-profit entrepreneurship is a
powerful path for those driven by a desire to make a positive social or
environmental impact. It involves establishing organizations that
address critical issues, but unlike traditional businesses, profit
generation isn't the primary goal.

Franchise Entrepreneurship. Franchise entrepreneurship offers

aspiring business owners a unique path. Franchise entrepreneurs
purchase the rights to operate a specific business model under a
franchisor's brand name. This means you'll run your own franchise
outlet, benefiting from the franchisor's established reputation,
marketing strategies, and operational expertise.
 MODULE 3
INSIDE THE
ENTREPRENEUR’S MIND
MODULE OVERVIEW
This module uncovers the mind of an entrepreneur. We will examine
how entrepreneurs think and act that pave their way to
entrepreneurial success.

LEARNING OUTCOMES
After finishing this module, the students should be able to:
Understand and distinguish growth mindset from fixed mindset
Learn how to develop a growth mindset
Be equipped with the characteristics of an entrepreneurial
mindset
Fixed Mindset vs Growth Mindset

Mindset is a pattern of thinking, it’s a mental attitude. It is a set of beliefs

that shape how you make sense of the world and yourself. It influences
how you think, feel, and behave in any given situation. It means that what
you believe about yourself impacts your success or failure.

Mindsets can influence how people behave in a wide range of situations

in life. For example, as people encounter different situations, their mind
triggers a specific mindset that then directly impacts their behavior in
that situation.

According to Stanford psychologist Carol Dweck, your beliefs play a

pivotal role in what you want and whether you achieve it.

Dweck describes two basic mindsets: fixed and growth. If you have a
fixed mindset, you believe your abilities are fixed traits and therefore can't
be changed. You might also believe that your talent and intelligence
alone lead to success, and effort is not required.

On the flip side, if you have a growth mindset, you believe your talents
and abilities can be developed over time through effort and persistence.
People with this mindset don't necessarily believe that anyone can
become Einstein or Mozart, but that everyone can get smarter or more
talented if they work at it.
Here are some fixed vs. growth mindset examples:

Research has shown that individuals with a growth mindset tend to be

more resilient, persistent, and motivated. They embrace challenges and
view them as opportunities to learn and grow, rather than as threats to
their self-worth. Those with a fixed mindset, on the other hand, may
actually be more likely to give up when faced with challenges, as they
believe that their abilities are fixed and cannot be improved.

It’s important to note that having a growth mindset doesn’t mean that
you will never experience failure. Instead, it means that you will view
failure as a natural part of the learning process and use it as an
opportunity to develop new skills and strategies.

People with a growth mindset are more likely to seek out feedback and
use it to improve their performance, while those with a fixed mindset may
be more likely to ignore feedback or become defensive when receiving it.
People with a growth mindset tend to set goals that are focused on
learning and development, while those with a fixed mindset may set
goals that are more focused on proving their abilities or achieving a
specific outcome.

Understanding the differences between growth and fixed mindsets can

help you to adopt a more positive and productive approach to learning
and personal development. By embracing challenges, seeking out
feedback, and focusing on the process of growth and learning, you can
develop a growth mindset that will help you to achieve your goals and
reach your full potential.

The Science Behind the Development of a Growth Mindset

Our beliefs about intelligence and talent can have a significant impact on
our motivation and performance.

One of the key factors that contribute to the development of a growth

mindset is the concept of neuroplasticity. This refers to the brain’s ability
to change and adapt in response to new experiences and challenges.
When we engage in activities that challenge us, such as learning a new
skill or tackling a difficult problem, our brain forms new neural
connections and strengthens existing ones. Over time, this can lead to
significant improvements in our cognitive abilities and overall
performance.

The role of effort and persistence is another important factor in the

development of a growth mindset. Those with a growth mindset
understand that success is not just about innate talent, but also about
putting in the time and effort to develop their skills. They are willing to
work hard, even in the face of setbacks and challenges, and believe that
their efforts will ultimately pay off.
The Impact of Praise
Interestingly, the language we use to praise and encourage others can
have an impact on their mindset.

In a landmark series of experiments, Dweck and her colleagues found

that kids behaved very differently depending on the type of praise they
received.

They found that Personal praise, or praising a child’s talents or labeling

them as “smart," promotes a fixed mindset. It sends a message to a child
that they either have an ability or they don't, and that there is nothing
they can do to change that fact.

Process praise, on the other hand, emphasizes the effort a person puts in
to accomplish a task. It implies their success is due to the effort and the
strategy they used, both of which they can control and improve over time.

How to Build a Growth Mindset

Adopting a growth mindset isn’t just beneficial; it's transformative—

especially in entrepreneurship. Here are five practical steps and strategies
to help you develop one.

Embrace Challenges. View challenges as opportunities rather than

obstacles. Each one is a chance to learn and grow, not a barrier to
success. Start by tackling small challenges and gradually take on
bigger ones as you build confidence and resilience.

Celebrate Effort, Not Just Success. Shift your focus from only praising
outcomes to recognizing and rewarding effort. Understand that
consistent effort over time is the key to mastery. Try to celebrate small
victories and incremental progress, which are vital steps toward
achieving larger goals.
 Cultivate Curiosity. Stay curious and always be willing to learn.
Whether reading about new industry trends, attending workshops, or
asking peers for their insights, new knowledge can help you
continually grow and adapt.

Prioritize Learning Over Approval. Focus on what you can learn in

every situation rather than seeking others' approval. This perspective
shift reduces fear of judgement and frees you to pursue more
ambitious, innovative projects.

Surround Yourself with Growth-Minded People. Build a network of

peers, mentors, and collaborators with a growth mindset. Their
attitudes and behaviors can serve as models for you to emulate.
Engaging with people who challenge and encourage your
development can accelerate your growth

4 Reasons Why Entrepreneurs Need a Growth Mindset

While a growth mindset can benefit anyone, it’s crucial for entrepreneurs.
Here are four ways a growth mindset can serve you as you launch and
grow your business.

It Allows You to Move into New Fields. When you have a growth
mindset, your past doesn’t define your future. This can be an asset if
you have expertise and experience in another field and want to pursue
entrepreneurship.

It Fosters Resilience. Resilience is the capacity to recover from and

move through difficult situations — is critical in the entrepreneurial
world. When challenges, setbacks, and failures inevitably arise, your
business’s survival depends on your ability to persevere and learn from
difficult situations.
It Enables You to Iterate on Your Product. Entrepreneurship as an
iterative process, involves continually searching for a winning
combination of opportunities and resources. This continual process of
testing an idea, learning from the results, and reiterating the product
is only possible with a growth mindset.

It Keeps You Humble. Finally, a growth mindset constantly reminds

you that there’s always more to learn. By knowing you have the
capacity to improve, a growth mindset can keep you humble
throughout your entrepreneurial journey.

This can be especially useful in combatting stagnation. People’s needs,

attitudes, and motivations change over time, so periodically reassess
your product-market fit. If you get too comfortable with your initial
knowledge, you could miss opportunities to grow with your target
audience and meet their needs as they arise.
Entrepreneurial Mindset: 5 Characteristics to Cultivate

Entrepreneurial Mindset refers to a specific way of thinking and

approaching situations that is characterized by successful entrepreneurs.
It involves a set of attitudes, skills, and behaviors that enable individuals to
identify opportunities, take calculated risks, and create value in various
contexts.

Entrepreneurship sparks innovation, drives employment, fuels economies

and offers solutions to consumer demands. But before those sparks and
drivers ignite, an entrepreneurial mindset must be in place as a catalyst.

It’s not a big idea alone that paves the path to ultimate entrepreneurial
success. Oftentimes the success or failure of a business comes down to
the characteristics of the entrepreneur themselves. It takes a unique
aggregate of characteristics to meld one big idea into a fully-functional
thriving business.

Here are the characteristics to cultivate to develop an entrepreneurial

mindset:

Optimistic. A positive attitude and outlook is a must for successful

entrepreneurs. The mindset of the head of the company sets the tone
for the rest of the company and influences corporate culture.

Research indicates that happy employees are better overall workers.

Psychological research has made a correlation between higher
productivity and positive work environments. Moreover, positive work
environments have been linked to higher business profits, fewer sick
days, and higher staff retention rates
Creative. “Creativity is the mother of invention”. Think of Steve Jobs
and the iPhone. Edison and the light bulb. The Wright Brothers and
the airplane. Each of these ground-breaking inventions would not
have come to fruition were it not for healthy doses of creative
gumption.

Even if you’re not in a “creative” industry, creativity is needed for

entrepreneurial success. The mind of an entrepreneur is always looking
for novel ideas and innovations. The basic life cycle of any
entrepreneurial product stems from the conception of an idea
followed by turning that idea into a viable product or service.

Persuasive. The best entrepreneurs are persuasive individuals. The

power of persuasion can help you negotiate, close a sale, or score a
lower price on your inventory. Not to mention, persuasive people tend
to be inspiring leaders and stellar bosses.

Motivated. One of the top entrepreneurial characteristics is intrinsic

motivation, meaning you are self-motivated as opposed to looking to
others to push you to do things or hold you accountable. Broadly
speaking, those who own their own businesses are incredibly
motivated to succeed. They’ve poured blood, sweat, and tears into
their company, and may have literally mortgaged their future to first
open their businesses’ doors. Having a lot at stake personally fuels the
motivational drive.

Tenacious. When you’re starting a business, you hope that your

business will be a wild success. It’s true that success is wonderful, but
failure is where growth and change happen. The key to learning from
failure is to actually learn and embrace your mistakes so they make
your better, not break you.