ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT

ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT

1. UNIVERSITY OF SAINT ANTHONY
COLLEGE OF ENGINEERING & ARCHITECTURE
INSTRUCTOR: AR. ALVIRIE CLAIRE A. BERMEJO-UVERO, UAP, RMP, LPT
ENTREPRENEURSHIP
AND ECONOMIC
DEVELOPMENT
GE ELEC 3: THE ENTREPRENEURIAL MIND

2. 1. ENTREPRENEURSHIP AND
ECONOMIC DEVELOPMENT TOPIC OUTLINE 2. ROLE OF ENTREPRENEURSHIP IN
ECONOMIC DEVELOPMENT–
FUNDAMENTALS OF ENTREPRENEURSHIP 3. TYPES OF ENTREPRENEURSHIP /
ENTREPRENEURSHIP CLASSIFICATION

3. WHAT IS
ECONOMIC
DEVELOPMENT?

4. ECONOMIC DEVELOPMENT
Economic development is the process by which
emerging economies become advanced
economies.
In other words, the process by which countries
with low living standards become nations with
high living standards.
Economic development also refers to the process
by which the overall health, well-being, and
academic level of the general population
improves.
The entrepreneur is the key to economic growth.
Whatever be the form of the economic and
political set-up of the country, entrepreneurship
is indispensable for economic development.

5. ROLE OF
ENTREPRENEURSHIP
IN ECONOMIC
DEVELOPMENT–
FUNDAMENTALS OF
ENTREPRENEURSHIP

6. ➔ Here are some of the important roles an
entrepreneur plays in the economic
development of a country:
1. Promotes Capital Formation
2. Creates Large - Scale Employment
Opportunities
3. Promotes Balanced Regional Development
4. Reduces Concentration of Economic
Power
5. Wealth Creation and Distribution
6. Increasing Gross National Product Per
Capita Income
7. Improvement in the Standard of Living
8. Promotes Country’s Export Trade
9. Induces Backward and Forward Linkages
10. Facilitates Overall Development

7. PROMOTES CAPITAL FORMATION
1
Entrepreneurs promote capital
formation by mobilizing the idle
savings of the public.
They employ their own as well as
borrowed resources for setting
up their enterprises.
Such types of entrepreneurial
activities lead to value addition
and creation of wealth, which is
very essential for the industrial
and economic development of
the country.

8. CREATES LARGE- SCALE
EMPLOYMENT OPPORTUNITIES2
Entrepreneurs provide immediate large
scale employment to the unemployed
which is a chronic problem of
underdeveloped nations.
With the setting up of more and more
businesses, as time passes, these
enterprises grow, providing numerous job
opportunities.
In this way, entrepreneurs play an
effective role in reducing the problem of
unemployment in the country, which in
turn clears the path towards the economic
development of the nation.

9. PROMOTES BALANCED
REGIONAL DEVELOPMENT3
Entrepreneurs help to remove regional
disparities through setting up of
industries in less developed and
backward areas.
The growth of industries and businesses
in these areas lead to a large number of
public benefits like road transport,
health, education, entertainment, etc.
Setting up more industries leads to more
development of backward regions and
thereby promotes balanced regional
development.

10. REDUCES
CONCENTRATION
OF ECONOMIC
POWER4
Economic power is the natural
outcome of industrial and business
activity.
Industrial development normally
leads to a concentration of
economic power in the hands of few
individuals which results in the
growth of monopolies.
In order to redress this problem a
large number of entrepreneurs
need to be developed, which will
help reduce the concentration of
economic power amongst the
population.

11. WEALTH CREATION
AND DISTRIBUTION5
It stimulates equitable
redistribution of wealth and
income in the interest of the
country to more people and
geographic areas, thus giving
larger sections of the society.
Entrepreneurial activities also
generate more activities and
give a multiplier effect in the
economy.

12. Entrepreneurs explore and exploit opportunities, encourage effective
resource mobilization of capital and skill, bringing in new products and
services and develop markets for growth of the economy.
An increase in gross national product and per capita income of the people
in a country is a sign of economic growth.
Per Capita Income or average income measures the average income
earned per person in a given area (city, region, country, etc.) in a
specified year. It is calculated by dividing the area’s total income by its
total population.
INCREASING GROSS NATIONAL
PRODUCT PER CAPITA INCOME6

13. IMPROVEMENT IN THE
STANDARD OF LIVING
7
An increase in the standard of living of the people is a
characteristic feature of the economic development of the country.
Entrepreneurs play a key role in increasing the standard of living of
the people by adopting the latest innovations in the production
of a wide variety of goods and services in a large scale that too at a
lower cost.
This enables the people to avail of better quality goods at lower
prices which results in the improvement of their standard of living.

14. PROMOTES COUNTRY’S EXPORT TRADE
8
Entrepreneurs help in promoting a
country’s export trade, which is an
important ingredient of economic
development.
They produce goods and services on a
large scale for the purpose of earning
huge amounts of foreign exchange from
export in order to combat the import
dues requirement.
Hence, import substitution and export
promotion ensure economic
independence and development.

15. INDUCES BACKWARD
AND FORWARD LINKAGES9
Entrepreneurs like to work in an
environment of change and try
to maximize profits by
innovations.
When an enterprise is
established in accordance with
the changing technology, it
induces backward and forwards
linkages that stimulate the
process of economic
development in the country.

16. Entrepreneurs act as catalytic agents for change which
results in a chain reaction.
Catalytic agent- in group psychotherapy, refers to a
participant who stimulates an emotional reaction
from fellow participants. Thus, this person actively
participates and facilitates the process of sharing
experiences.
Once an enterprise is established, the process of
industrialization is set in motion. This leads to the overall
development of an area due to an increase in demand
and setting up of more and more units.
In this way, the entrepreneurs multiply their
entrepreneurial activities, thus creating an environment
of enthusiasm and conveying an impetus for the overall
development of the area
FACILITATES OVERALL DEVELOPMENT
10

17. Some of the important roles an entrepreneur
plays in the economic development of a country:
1. Promotes Capital Formation
2. Creates Large - Scale Employment
Opportunities
3. Promotes Balanced Regional Development
4. Reduces Concentration of Economic
Power
5. Wealth Creation and Distribution
6. Increasing Gross National Product Per
Capita Income
7. Improvement in the Standard of Living
8. Promotes Country’s Export Trade
9. Induces Backward and Forward Linkages
10. Facilitates Overall Development

18. TYPES OF
ENTREPRENEURSHIP /
ENTREPRENEURSHIP
CLASSIFICATION

19. TYPES OF ENTREPRENEURSHIP
1. Administrative Entrepreneurship
2. Opportunistic Entrepreneurship
3. Acquisitive Entrepreneurship
4. Incubative Entrepreneurship
5. Imitative Entrepreneurship
6. Private Entrepreneurship
7. Public Entrepreneurship
8. Individual Entrepreneurship
9. Mass Entrepreneurship
10. Small Business Entrepreneurship
11. Large Company Entrepreneurship
12. Scalable Startup Entrepreneurship
13. Social Entrepreneurship
14. Intrapreneurship
15. Technopreneurship
16. Cultural Entrepreneurship
17. International Entrepreneurship
18. Ecopreneurship
19. Agripreneurship
20. Transpreneurship
21. Commercial Entrepreneurship
22. E-Entrepreneurship
23. Domestic Entrepreneurship
24. Trading Entrepreneurship
25. State Entrepreneurship
26. Joint Entrepreneurship

20. ADMINISTRATIVE ENTREPRENEURSHIP
TYPES OF ENTREPRENEURSHIP
1
Under this category, all the administrative techniques
and functions of entrepreneurial activity are included.
It gives a very effective way to manage all the current
as well as future situations of the business with merits
and a competitive edge.
This is in fact, the traditional Research &
Development management approach.
It is the joint efforts of both the general management
and scientific-technical personnel to identify areas
for research and development of new products,
techniques, or the improvement of the existing ones.
There are few examples of Administrative
Entrepreneurship such as management of quality,
redesigning of job, new techniques to do things and
management by consensus.

21. OPPORTUNISTIC ENTREPRENEURSHIP
TYPES OF ENTREPRENEURSHIP
2
“Hit the iron when it is hot” this proverb
describes this kind of entrepreneurship and is
the best exhibit of the features of
Opportunistic Entrepreneurship.
New opportunities are also offered by the
changes in the environment but not every
business owner is able to identify the
opportunities and utilize the same in a timely
manner.
The opportunistic entrepreneurship describes
as identifying, exploiting and performs the
upcoming opportunities in the first hand.
“Opportunity can come from any source
and at any time, it’s about how you respond”

22. ACQUISITIVE ENTREPRENEURSHIP
TYPES OF ENTREPRENEURSHIP
3
This type of entrepreneurship learns
from other competencies, as well as
improves the efficiency of the business
and other related competencies.
It acquires something new of value, the
competitive environment etc.
The highlighted point is that some
failures never prevent them from learning
and developing new skills but also
encourages them to figure out such
new things all the time.

23. INCUBATIVE ENTREPRENEURSHIP
TYPES OF ENTREPRENEURSHIP
4
It generates and nurses new ideas and
ventures within the organization.
It manages it in a productive way and
makes sure the material gain for the
business firm.
They pursue and help to get differentiated
technologies to promote creations and
innovations, like Microsoft, Nokia, etc.
always incubates new varieties types of
products and creates product
differentiation in the market.

24. IMITATIVE ENTREPRENEURSHIP
TYPES OF ENTREPRENEURSHIP
5
Under an agreement with a franchise, this
entrepreneurship imitates or copying the
operative products and services.
It is a model that assists to spread a new
technology across the globe so that
people can utilize it.
It involves the adoption of current
technologies from across the world and
takes on existing technologies with some
few modifications that suit the local
conditions.

25. PRIVATE ENTREPRENEURSHIP
TYPES OF ENTREPRENEURSHIP
6
Initiate entrepreneurship under the private
sector is named as Private Entrepreneurship.
The government of every nation gives ample
support services via public as well as private
concerns to motivate non-public initiative in
taking the ventures of Entrepreneurship.
Moreover, it speeds up the economic
development and maintains a balance
between a layer and mutual relationship.
EXAMPLES: Tesla, different food chains and
hospitals all are examples of private
entrepreneurship.

26. PUBLIC ENTREPRENEURSHIP
TYPES OF ENTREPRENEURSHIP
7
Public Entrepreneurship referred to as the
entrepreneurship that is come under the
government through the various development
agencies.
All developed and underdeveloped nations take
initiative in venture ideas to meet the preliminary
shortage of private Entrepreneurs.
These are different from private entrepreneurs
because they work under government to solve
public and environment issues.
Also, they are not social entrepreneurs because
they are bound to governments rules and
regulations.

27. INDIVIDUAL ENTREPRENEURSHIP
TYPES OF ENTREPRENEURSHIP
8
It is entrepreneurship that is
managed and executed by an
individual or a member of a family
with some personal motives as well
as initiatives, thus it is called
individual Entrepreneurship.
EXAMPLES: Steve Jobs, J.k Rolling
and Mark Zukerberg etc

28. MASS ENTREPRENEURSHIP
TYPES OF ENTREPRENEURSHIP
9
The emergence of this category of
entrepreneurship occurs when there is a
presence of a lot of favorable climate of
encouragement as well as a motivation
among the common masses and this
describes the Mass Entrepreneurship.
It leads to increase the small and large
enterprises in a nation.
EXAMPLES: Food caterers, beauty salon
and local shops

29. SMALL BUSINESS ENTREPRENEURSHIP
TYPES OF ENTREPRENEURSHIP
10
A greater number of businesses in society are
small that employ more than 50% of total non-
government workers in the Philippines.
The profit in these types of businesses is pretty
less as the main reason behind them (among
employers) is creating a living for their families.
A small entrepreneur can be the person who
operates a business by hiring local people of
family members. The majority of them funds
their business through friends or family or
business loans.
EXAMPLES: grocery stores, confectionary stores,
electricians, house cleaners, and hairdressers,
etc.

30. LARGE COMPANY ENTREPRENEURSHIP
TYPES OF ENTREPRENEURSHIP
11
Large-company entrepreneurship refers to the
activities and initiatives undertaken within
well-established, sizable organizations.
It is characterized by pursuing new business
opportunities, innovation, and growth strategies
while leveraging the existing company's
resources and market presence.
Companies like Disney, Google, Toyota, and
Microsoft who have finite life cycles, as in, they
keep innovating and offering consumers new
products that are variants around their core
product-line.

31. SCALABLE STARTUP ENTREPRENEURSHIP
TYPES OF ENTREPRENEURSHIP
12
The majority of people believe that small business
and Scalable Startup Entrepreneurship is same.
They are pretty different in reality.
In this version of entrepreneurship, the company is
started with a vision that changes the universe.
The funding in such businesses arises from the
venture capitalists, and that’s why they hire top
employees.
The main motive in this entrepreneurship is to seek a
scalable and repeatable business structure.
After identifying them, they look for further funding so
that business can grow.
Only a little bit number of businesses is scalable
startups due to the involvement of risks.
EXAMPLES: e-commerce websites, Facebook, etc.

32. SOCIAL ENTREPRENEURSHIP
TYPES OF ENTREPRENEURSHIP
13
In this type of entrepreneurship, people in
business are the innovators who target on
development of products and services, so that
social requirements and problems can be solved.
Unlike scalable startup entrepreneurship, the main
motive of entrepreneurs in this case is improving
the world.
While businessmen aim to define, compete or
create a market with the goal of earning in mind,
the social entrepreneur looks at his community,
sees the challenges, and commits to their
improvement.
These social enterprises range from a variety of
industries and beneficiaries such as infants and
mothers, employment assistance, and the
environment.

33. SOCIAL ENTREPRENEURSHIP
TYPES OF ENTREPRENEURSHIP
13
TYPES OF SOCIAL ENTERPRISES
1. Leverage non-profit
a.Uses funds in innovative ways to be able to fulfil a
need. Usually, these enterprises have a more
traditional way of tackling the issues they take up.
2. Hybrid non-profit
a.Uses profit to be able to support its causes and
operations. Funding comes from market or
government failures aside from grants and support
from the private sector.
3. Social business venture
a.Uses set-up businesses in line with the enterprise to
support its operations. This mostly happens to social
enterprises due to lack of funds and/or support.

34. SOCIAL ENTREPRENEURSHIP
TYPES OF ENTREPRENEURSHIP
13
PREMIER EXAMPLES:
1. Dr. Maria Montesori
a. Who revolutionized early childhood education
Montessori Schools
2. Florence Nightingale
a. Opened the first nursing school and provided
modern practices that are still being followed
today.
3. William lever
a. William Lever’s social mission is all about the
whole idea that cleanliness can be achieved by
every person. He started with his Sunlight Soap
that comes pre-cut and added palm oils so that it
will be quick to lather. The one in the market at
that time was cut from a big batch at a store and
was harder to use.

35. INTRAPRENEURSHIP
TYPES OF ENTREPRENEURSHIP
14
This term was coined by Gifford Pinchot in the
year 1973.
It is based on fostering the activities of
entrepreneurs in a large organization by making
improvements in the products and branding them
to increase the profitability.
Intrapreneurship refers to employee initiatives in
organizations to undertake something new,
without being asked to do so. (Ndedi, 2004)
Intrapreneur is an employee who is tasked with
developing an innovative idea within a company
and can draw on its resources to do so.
(dictionary.com)
The valuable asset for an organization considered
as innovation and dedicated efforts by the
intrapreneur.

36. TECHNOPRENEURSHIP
TYPES OF ENTREPRENEURSHIP
15
It is a fusion of technology and entrepreneurship,
refers to the process of integrating technological
innovations with entrepreneurial ventures to create
new businesses or transform existing ones.
It is a sort of new breed of entrepreneurship and
needs an entrepreneur who is creative, techno-savvy,
passionate as well as the ability to calculate
associated risk in advance.
IT plays an important role and gives benefits such as
generate employment, the best utilization of
resources, growth of technology and creates capital.
Examples:
Microsoft
Apple
Facebook
Instagram, etc.

37. CULTURAL ENTREPRENEURSHIP
TYPES OF ENTREPRENEURSHIP
16
This is an emerging discipline that examines how
cultural products (such as art, theater, and literature)
and cultural activities (like sports, music, food, and
film events) have an impact on the growth of local,
national, and global economies.
They produce products that are culturally good and
generating a lot of opportunities for economy, society
and culture.
Such entrepreneurship works in cultural professions
such as artists, writers, musicians, dancers,
advertisers, bloggers, architects and so on.
Sometimes, cultural entrepreneurs lie on media tools
like Twitter and Kickstarter to change the ideas, belief
and behavior of the people through communication
and influence.

38. INTERNATIONAL ENTREPRENEURSHIP
TYPES OF ENTREPRENEURSHIP
17
It involves various activities such as opening new
branches of a business firm in new locations,
exporting the products to other countries and get
a license to sell as well as promote the products
across the nations.
The highlighted purpose of this entrepreneurship is
to fulfill and satisfy the needs and wants of the
target audiences.
This entrepreneurship gets the benefit when the
demand for products increases internationally
but the need for the same product is domestically
not required or decreasing.

39. ECOPRENEURSHIP
TYPES OF ENTREPRENEURSHIP
18
It is also named as “Green entrepreneurship”.
It involves the perspectives that signify corporation
with the environment by working on their goals as well
as profitability.
This term gained popularity in the year 1990s and
termed as “Environmental entrepreneurship”.
Last but not least, this entrepreneurship is concerned
with the problems of the environment while focusing on
the operations of the business firm and its profit
margin.
It has three main concepts such:
Eco-innovation
Eco-opportunity
Eco- commitment
Examples:
Body Shop, Ben and Jerry’s, Patagonia, Grow Green
Happiness etc

40. AGRIPRENEURSHIP
TYPES OF ENTREPRENEURSHIP
19
When a business owner started to make developments in
the field of agriculture, then it is known as
Agripreneurship.
It is like a simple business and includes all the operations
of a business firm such as manufacturing, production and
distribution of farm supplies.
In addition to this, it also includes floriculture, horticulture,
sericulture, animal husbandry, biotechnology and so on.
Basically, it is a type of farming business includes the
profitability, use of digital technologies to improve
farming, farm management, and innovative solutions and
reduce the wastage of crops.
Examples:
Calata Group of Companies
Spin Farming, Rantachook
Herbal Processing Units
Plant Clinics are also the examples of agripreneurship

41. TRANSPRENEURSHIP
TYPES OF ENTREPRENEURSHIP
20
When people from various groups gender such
as transgender and Hijra, come up with some
small scale businesses to fulfill their day to day
needs, then it is widely known as
Transpreneruship.
It is associated with the third class of gender
where people are not only beggars or sex
workers, but they get their bread and butter from
doing any small scale business.
For example: A fair was organized by “Anam
Prem” in Mumbai where thirty-five stalls were
there and most of the shopkeepers belong to
transgender; started their stalls of different
products such as food, artificial jewelry, artificial
flowers and so on

42. COMMERCIAL ENTREPRENEURSHIP
TYPES OF ENTREPRENEURSHIP
21
This type of entrepreneurship is associated with
the profitability only and emphasized the
opportunities and not on the resources.
It uses the available resources lies between the
hierarchies as well as handles the network on
behalf of the entity.
It is viewed as profit-based entrepreneurship as
all the operations held by taking profit as a major
motive.
This concept was coined about 250 years ago and
focuses on the economy.
Examples: Any organization that works for profit
like tiktok, Facebook, snapchat and not for society
issues.

43. E-ENTREPRENEURSHIP
TYPES OF ENTREPRENEURSHIP
22
This is also known as E-Entrepreneurship or
Cyberpreneurship.
In this world of full of technology, the sea of
opportunities is there where individual, organizations
as well as social and nations can use their mobile
phone and computer again and again to access the
online services.
Every business owner tries to shift to online
business and get a reward from technology.
The term “E-Entrepreneurship” indicates analyzing
and identifying the bunch of resources and converts
the same to online venture business.
This sort of entrepreneur is also known as SENs (Self
Employed Entrepreneurs).
Examples: Shopee, Lazada, etc.

44. DOMESTIC ENTREPRENEURSHIP
TYPES OF ENTREPRENEURSHIP
23
When a business owner produces goods and
provides services within the boundaries of a
nation, then it is known as Domestic
Entrepreneurship.
They follow all the rules and regulations related
to the business established by the government
of the country to grow their business
domestically.
It complies with the policies of the government,
highly convenient, culturally sensitive, adapts the
technologies, better understand the local system,
more opportunities for growth and risk as well as
reward.
Examples: House Cleaning, Dog Walking, Freelance
writing, etc

45. TRADING ENTREPRENEURSHIP
TYPES OF ENTREPRENEURSHIP
24
These are a kind of mediator between the
manufacturer of a product and its
customers or retailers or wholesalers.
All the activities related to the trading of an
organization are done through such type of
entrepreneurs.
It serves as middlemen for dealers,
wholesalers, manufacturers and the
customers.

46. STATE ENTREPRENEURSHIP
TYPES OF ENTREPRENEURSHIP
25
When a business firm is managed and
operated wholly by the state or the
government of the state, then it is defined as
“State Entrepreneurship”.
All the trading, as well as industrial ventures,
are fully undertaken by the state only and not
a single entrepreneur is there.
Examples: Any Business that is based on state

47. JOINT ENTREPRENEURSHIP
TYPES OF ENTREPRENEURSHIP
26
It is a collaboration of private and public
entrepreneurship.
When a business enterprise is partly owned,
controlled and managed by a private
entrepreneur and the government, then it is
named as Joint Entrepreneurship.
Examples: PAG-IBIG, Smart Phone development
by Nokia and Microsoft.

48. TYPES OF ENTREPRENEURSHIP
1. Administrative Entrepreneurship
2. Opportunistic Entrepreneurship
3. Acquisitive Entrepreneurship
4. Incubative Entrepreneurship
5. Imitative Entrepreneurship
6. Private Entrepreneurship
7. Public Entrepreneurship
8. Individual Entrepreneurship
9. Mass Entrepreneurship
10. Small Business Entrepreneurship
11. Large Company Entrepreneurship
12. Scalable Startup Entrepreneurship
13. Social Entrepreneurship
14. Intrapreneurship
15. Technopreneurship
16. Cultural Entrepreneurship
17. International Entrepreneurship
18. Ecopreneurship
19. Agripreneurship
20. Transpreneurship
21. Commercial Entrepreneurship
22. E-Entrepreneurship
23. Domestic Entrepreneurship
24. Trading Entrepreneurship
25. State Entrepreneurship
26. Joint Entrepreneurship

49. REFERENCE:
Entrepreneurial Mindset: Understanding Key Theories and Practices. https://www.studocu.com/ph/document/sti-
college/entrepreneurship/entrepreneurial-mind/65170716
THANK YOU
END.