ENTREPRENEURSHIP

In political economics, entrepreneurship is the process of identifying and starting a new business venture, sourcing and organizing the required resources, while taking both the risks and rewards associated with the venture.

The capacity and willingness to develop, organize and manage a business venture along with any of its risks in order to make a profit.

ENTREPRENEUR

Someone who exercises initiative by organizing a venture to take benefit of an opportunity and, as the decision maker, decides what, how, and how much of a good or service will be produced.

An entrepreneur is an opportunity finder who sees a need, assesses the situation, ventures a risk to fulfill that need, and makes a profit.

An entrepreneur is an innovator who creates new products and services or expands existing markets.

An entrepreneur facilitates enterprise productivity, pushing sales and profits to higher levels with the application of ingenious schemes and strategies.

An entrepreneur is driven by a strong desire to be successful and is consumed by a higher motivation to excel.

SOCIO-ECONOMIC BENEFITS FROM ENTREPRENEURSHIP

A. Promotes Self-help and Employment

In the process, every entrepreneur helps or assist the government not only by providing employment for himself but also for providing employment to those employed by the firm.

B. Mobilizes Capital

Every person that goes into entrepreneurship or puts up his own business means releasing or mobilizing capital that should fire up the economy.

C. Provides Taxes to the Economy

The entry of the entrepreneur into the world of business means tax sources for the government. Every entrepreneur contributes to the economy, a kind of income out of the real estate, income tax, sales tax, fees, and all other forms of payment to the national as well as local government units.

D. Empower Individuals

Because of the high income earning potentials of entrepreneur compared to those who are employed, the possibility of wealth accumulation is enhanced and his economic standing in society and so as the powers that goes with money and other financial resources that goes with entrepreneurial endeavors.

E. Enhance National Identity and Pride

The quality and quantity of products and services produced by every entrepreneur is a source of pride and identity for a country. It is not only the entrepreneur that directly benefits from his/her entrepreneurial endeavors but the country also takes pride and honor that goes with it.

F. Enhance Competitive Consciousness

Innovation being the essence of entrepreneurship is a catalyst to a consciousness and culture of competition which in a long term breeds quality and international/global competitiveness.

G. Improves Quality of Life

The entrepreneur’s penchant for innovation and development of new product as well as creation of new markets redounds to the betterment of the products and services- and hence the quality of life.

H. Enhances Equitable Distribution of Income and Wealth

With entrepreneurs succeeding in their respective endeavors, chances are that equitable distribution of income and wealth can be likewise expected.

ATTRIBUTES OF ENTREPRENEURS“ Aside from assuming risks and initiating

innovation, taking control such as assuming ownership of the business is a primary concern of the entrepreneur.”

Dr. Karl Vesper is a professor of Business Administration, Mechanical Engineering, and Marine Studies at the University of Washington and a nationally recognized chronicler of entrepreneurship education in U.S. colleges and universities. From 1982 to 1985, Vesper served as Chairman of the Management and Organization Department at the University of Washington, where he has been on the faculty since 1969.

Karl Vesper has classified the entrepreneurs in various forms as follows:A. Solo self-employed individual- This group of entrepreneurs include such group as tradespeople, sales agents, repairmen, and brokers as well as highly paid professionals, accountants, physicians who operate alone or with only a few employees and perform work personally. This group also includes practitioners in the field of expertise who provide management or technical advisory services on a fixed-term or long-term basis.

B. Deal-to-dealers- This group include highly knowledgeable businessmen engaged in various forms of trades frequently in directly or indirectly related lines of work. Their engagement in other forms of business directly or indirectly related to their existing or main line of business comes on specific transaction and may just be one-shot deal.

C. Team builders- They refer to those who go on to build large companies using hiring and delegation can be regarded as another category. An example of this include a skilled machinist who, after his apprenticeship , opens his own small shop and then gradually expands his work force as sales rise.

D. Independent Innovators- They include such persons who hit upon ideas for better products or services and then create companies to develop, produce and sell them.

E. Pattern Multiplier- These are entrepreneurs who spot an effective business pattern, quite possibly originated by someone else, and multiply it to realize profits. An example of this is the McDonald’s “drive thru” restaurant and fast food chain which later went into franchise expansion.

F. Economy-of-scale exploiters- The fact that unit costs tend to shrink as volume expands has been exploited particularly by entrepreneurs in the discount merchandising business. By locating the business in lower rent and tax areas, and by reducing services, they are able to reduce prices, which has given them sales volume enabling them to reduce prices further and make it difficult for competitors to enter or complete.

G. Capital Aggregators- They include smart entrepreneurs who use

their experience and expertise in pooling or syndicating a group of financiers to put together a business endeavor.

H. Acquirers- Among others, there are two ways to enter

independent business- start a new one or acquire a growing concern. Those who acquire hasve a variety of styles.

I. Independent Inventors- They include pure investors who really

developed their own product or invention and take care of marketing them.

J. Buy-sell artist- They include wise guys referred to as

corporate raiders and brokers who turn around, sell and liquidate.

K. Apparent Value Manipulators- They refer to those who acquire assets at a

discount, representing them for a new use or market, and restructure balance sheet to improve ratio.