COURSE LEARNING MODULE
ENTR1013 – Entrepreneurial Mind
Lesson 2: Innopreneurship: Entrepreneurship and Innovation
Topic: Innopreneurship: Entrepreneurship and Innovation
Learning At the end of this module, you are expected to:
Outcomes:
1. Define Entrepreneur and Innovator
2. Be knowledgeable of the Relevance of Studying Entrepreneurship and
Innovation
3. Understand Why be an Entrepreneur?
4. Identify The 4-Gate Model to prosperity
5. Understand the 12 M’s Entrepreneurship Journey Map
LEARNING CONTENT
Introduction
Entrepreneurial Mind
Entrepreneurial Mindset is a term applied to a way of thinking. It’s about
creativity, design thinking, and development of innovative solutions to problems.
While these ideas can be applied to business development, the entrepreneurial
mindset can be applied to any situation in which ideas, creativity, and focus on
stakeholder needs can be used to solve real world problems.
Watch this short video about 'Entrepreneurial Mindset' by KauffmanFoundation
https://www.youtube.com/watch?v=8NBnoVrLFPU
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Lesson Proper:
InnoPreneurship: Innovation + Entrepreneurship
Entrepreneurs: Innovators or creative minds that can make things happen.
“Making things happen is not the same as making new things happen.”
An owner of a business who invests his/her resources to bring idea to life,
setting the direction that transforms that idea into reality, thus providing and
gaining value that balances effort, purposes and profit.
Different from a corporate entrepreneur who does everything like an
entrepreneur but does not have a financial stake in the business.
THE RICHEST PEOPLE IN THE PHILIPPINES ARE MOSTLY ENTREPRENEURS.
Check out these eight individuals, all of them are successful Filipino
entrepreneurs,
https://business.inquirer.net/273445/eight-successful-filipino-entrepreneurs-who-
started-small
You could study well, work for others forever, but you might miss the
opportunities to do more for yourself and for your family. You only have one life to
live and leave a legacy. What will you choose to do?
5 Components of an Entrepreneur
Resource Investment - Entrepreneurs invest resources and take risks.
Idea Development - They transform ideas into revenue-generating
ventures, choosing the best options.
Direction Setting - Entrepreneurs gather quality information to make
informed decisions.
Execution - They ensure all elements of their business work together
effectively.
Value Addition - A strong financial understanding is essential for
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enhancing business value.
Who is an Innovator?
An innovator introduces new processes, products, services, or business
models that achieve commercial success, defined by customer acceptance. This
differs from an inventor, who creates something new but may not achieve
commercial viability.
Business and Personal Planning
A business needs a plan, which can be:
1. Formal Document: For external stakeholders.
2. Simplified Outline: For internal guidance.
This plan provides direction for the firm's future.
Prosperity for All
Profit is essential for business success, achieved through the Wealth
Conversion Principle, which includes:
Starting with an idea based on vision.
Investing cash to bring the idea to life.
Purchasing and selling inventories, converting receivables back to cash,
creating a value-adding cycle.
Wealth Conversion Principle: 3 elements to create profit for a business idea:
3 S’s for Prosperity
To realize the Wealth Conversion Principle:
Squad: Build a strong team with chosen partners.
Spread: Ensure product pricing exceeds costs.
Speed: Develop efficient systems for managing accounts receivable.
Key Factors for Successful Entrepreneurship
Commitment: A strong drive to achieve goals.
Coordination: Organizing diverse teams for efficiency.
Competency: A blend of skills, attitudes, and behaviors to excel in roles.
Gatekeepers – screens the potential entrants along the way.
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4-GATE MODEL TO PROSPERITY
Preparation Gate - Focus on IQ (Intelligence Quotient).
Example: Butch Salvador turned limited resources into a successful car repair
business by creative marketing.
Marketing Gate - Focus on CQ (Creativity Quotient).
Example: AHEAD tutorial shifted perceptions by targeting high-achieving
students.
Execution Gate - Focus on EQ (Emotional Quotient).
Emphasizes organizational structure and effective management methods.
Self-Leadership Gate - Focus on AQ (Adversity Quotient).
Focus on personal growth and resilience in facing challenges.
Example: Jack Ma's persistence through numerous rejections exemplifies
resilience in entrepreneurship.
Started from when he failed a key primary test twice and failed three times
while in middle school.
He also applied to study in Harvard and rejected ten times.
Got rejected 30 times in applying for a job.
25 people applied in KFC and they accepted 24 except him.
Five people applied for a police job and they accepted four except him.
CEO (Customers, Employees and Owners) – he/she needs to find a good balance of
all three constituents and ensure each of these three parties gets a compelling
based on what is valuable to them.
Gates Interest and Expectations Gatekeepers
Preparation Profit and Dividends Owners and Stockholders
Marketing Quality and Good Price Customers
High Pay and Work-Life
Execution Employees
Harmony
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Self-Leadership Fulfillment Self
12 M’S TO SUCCESSFUL ENTREPRENEURSHIP
Gate 1: Preparation
Money: Essential for starting up.
Model: A comprehensive plan for growth.
Mentors: Experienced advisors who guide entrepreneurs.
Gate 2: Marketing
Mindset: Embrace innovation over traditional entrepreneurship.
Market: Identify and understand target buyers.
Message: Craft compelling brand positioning.
Gate 3: Execution
Machinery: Structure that delivers value.
Methods: Systems for operational control.
Management Skills: Leadership and resource management capabilities.
Gate 4: Self-Leadership
Moving forward – having the grit to continue the business despite obstacles.
Mission – about purpose or the reason why the business exists beyond
making a profit.
Mastery – building capabilities, knowing the self, the environment as well as
the operations.
ENTREPRENEURSHIP KEY FACTORS MATRIX
Key Factors for
Self –
Success / 4- Preparation Marketing Execution
Leadership
Gate Model
Commitment Money Mindset Machinery Moving
Forward
Coordination Model Market Methods Mission
Competency Mentors Message Management Skills Mastery
An entrepreneur needs four different types of commitment:
Money – Commitment to maximize return on investment.
Mindset – Commitment to have an innovation mindset.
Machinery – Commitment to create an effective organization.
Moving Forward – Commitment to keep iterating toward objectives and goals.
An entrepreneur needs four different tasks of coordination:
Model – Coordinate the inter-dependency of a business model.
Market – Coordinate choice and penetration of the target market.
Methods – Coordinate processes needed to routinize operations.
Mission – Coordinate the establishment and fulfillment of a company’s
mission.
An entrepreneur needs four different groups of competencies:
Mentors – Competency related to sense making and risk assessment that can
be provided or guided mentors.
Message – Competency related to customer-focused communication,
expressed in terms of a positioning or a message.
Management Skills – Competency related to initiative and resource
management and influencing people skills as part of critical management
tasks.
Mastery – Competency related to adaptability and grit resulting to mastery of
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strategy and change, as well as customer understanding and self-
transformation.
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Is Entrepreneurship for Everyone?
It can be learned but it is not for everybody.
Passion is not enough. A person needs an eye to satisfy unmet needs
of a group of prospects that can be large enough to have a
differentiated, growing, profitable, scalable and sustainable operation.
8 COMPETENCIES OF AN ENTREPRENEUR
Competencies – combination of abilities (technical skills like knowledge
and expertise) and behavior (like people skills or motivational level)
Risk appetite – sees rewards for taking on opportunities that have
potential positive (or negative) consequences.
Sense-making – scanning the environment to detect and interpret what is
happening today in order to connect and take actions on potential future
outcomes.
Customer-Focus – choosing, initiating and sustaining relationships with
customers.
Initiative – being proactive in taking prompt actions to attain objectives.
Influence – ability to use personal branding and interpersonal styles to
gain buy-in from constituents.
Adaptability – adjusting to external changes while initiating internal
changes to attain objectives.
Grit – persistent to attain long-term goals despite adversity.
4 Competencies of an Innovator
Creativity – forming a mental image or new idea about the future.
Critical Thinking – offering unique ways to solve defined problems
Collaboration – developing relationships with the right partners to attain
objectives.
Communication – engaging constituents to make them understand and
accept your message.
END of LESSON 2…
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