Business and entrepreneurship

DR. NERISSA P. BATOON

and
MS. HAZEL BETH M. BAUTISTA
 Module II – The Entrepreneurial Skills and Competencies

Learning Objectives
At the end of this module, the students are expected to:
1. define entrepreneurial competencies;
2. identify the different entrepreneurial competence ;
3. discuss the 10 competencies for entrepreneurial success;
4. describe a Filipino entrepreneur and
5. reflect on the distinguishing characteristics of Filipino entrepreneurs.

Introduction
This module provides the students a thorough discussion on the different entrepreneurial
competencies which are discussed in Lesson 3 and insights of successful Filipino entrepreneurs and
their characteristics as discussed in Lesson 4.

Lesson 3

Every career draws on the competencies of an individual. Some of these competencies may be
general and some peculiar to the chosen career. Competence as defined is an underlying characteristic
of persons, which results in effective and /or superior performance in a job.

What do we mean by entrepreneurial competencies?

Entrepreneurial competencies can be defined as underlying characteristics such as generic and

specific knowledge, motives, traits, self-images, social roles, and skills which result in venture birth,
survival, and/or growth.
Entrepreneurial competencies are defined as individual characteristics that include both attitudes
and behaviors, which enable entrepreneurs to achieve and maintain business success.
There are three (3) classes of competencies:
a) The Entry level Competencies, which comprise individual characteristics of his model;
b) The Basic Competencies, which consist of knowledge and skills needed to perform the jobs
 or functions of managing;
c) The High Performance Competencies, which include behaviors that produce significantly
superior workgroup performance in more complex organizational environments.

THE ENTREPRENEURIAL COMPETENCE

The knowledge of entrepreneurial competence has been sharpened over the last 3 decades. The
following is a list of major competencies that contribute towards top performance.
1. INITIATIVE:
 Takes action that goes beyond job requirements or the of the situation.
 Does things before being asked or forced to by events.
 Acts to extend the business into new areas, products, or service.
2. SEES AND ACTS ON OPPORTUNITIES:
 A mindset where one is trained to look for business opportunities from everyday experiences.
 Looks for, sees and act on opportunities-business, educational or personal growth.
 Seizes unusual opportunities to obtain financing equipment, land, work space or assistance.
3. PERSISTENCE:
 Takes repeated action or varied action to overcome obstacles that get in the way of reaching
goals.
 Takes action in the face of a significant obstacle.
4. INFORMATION SEEKING:
 Takes action on his own to get information to help reach objectives or clarify problems.
 Does personal research on how to provide a product or service.
 Consults experts for business or technical advice.
5. CONCERN FOR QUALITY OF WORKS:
 Acts to do things that meet or beat existing standards of excellence.
 Attention to details and observance of established standards and norms.
 States a desire to produce work of high quality.
 Compares own work or own company’s work favorably to that of others.
6. COMMITMENT TO WORK CONTRACT:
 Acts to do things that place the highest priority on getting a job completed.
  Accepts full responsibility for problems in completing a job for others.
 Pitches in with workers or works in their place to get the job done.
 Expresses a concern for satisfying the customer.
7. EFFICIENCY ORIENTATION :
 Finds ways to do things faster or with fewer resources or at a lower cost.
 Looks for or finds ways to do things faster or at less cost .
 Uses information or business tools to improve efficiency.
 Expresses concern about costs vs. benefits of some improvements, change, or course of action.
8. SYSTEMATIC PLANNING:
 Develops and uses logical, step-by-step plans to reach goals.
 Plans by breaking a large task down into sub-tasks.
 Develops plans that anticipate obstacles.
 Evaluates alternatives.
 Takes a logical and systematic approach to activities.
 Simultaneously attending to production, marketing and financial aspects (parts) of the overall
business strategy (the whole).
9. PROBLEM SOLVING:
 Identifies new and potential ideas to reach goals.
 Switches to an alternative strategy to reach a goal.
 Generates new ideas or innovative solutions.
 Observing the symptoms, diagnosing and curing.
10. SELF-CONFIDENCE:
 Has a strong belief in self and own abilities .
 Expresses confidence in his ability to complete a task or meet a challenge.
 Sticks to own judgment in the face of opposition.
 Does something that he says is risky.
11. ASSERTIVENESS:
 Confronts problems and issues with others directly.
 Tells others what they have to do.
 Reprimands or disciplines those failing to perform as expected.
12. USE OF INFLUENCE STRATEGIES:
  Uses a variety of strategies to influence others.
 Acts to develop business contacts.
 Uses influential people as agents to accomplish own objectives.
 Selectively limits the information given to others.
13. MONITORING:
 Develops or uses procedures to ensure that work is completed or that work gets standards or
quality.
 Personally supervises all aspects of a project.
 Ensuring the progress of the venture as planned.
14. CONCERN FOR EMPLOYEE WELFARE:
 Takes action to improve the welfare of employees.
 Takes positive action in response to employee’s personal concerns.
 Express concern about the welfare of employees.

Lesson 4

THE TEN (10) COMPETENCIES FOR ENTREPRENEURIAL SUCCESS

1. Integrity
- the entrepreneur has a clear sense of values and beliefs that underpin the creative and business
decisions that they make; and that influence the actions they take, particularly when in difficult or
challenging circumstances
2. Conceptual Thinking
- the entrepreneur is prepared to use fresh approaches; comes up with crazy ideas that may just work,
leading to radical change or significant improvements; and takes time to listen to new ideas without pre-
judgement
3. Risk taking
- the entrepreneur understands that risk taking means trying something new, and possibly better, in the
sense of stretching beyond what has been done in the past; and that the constant challenge is to learn
how to assess choices responsibly, weighing the possible outcomes against his/her values and
responsibilities

4. Networking
- the entrepreneur understands that networking is a key business activity which can provide access to
information, expertise, collaboration and sales; and that careful planning and preparation helps achieve
desired results.
5. Strategic Thinking
- the entrepreneur understands and values the planning process, thinking and planning over a significant
timescale; recognizes external trends and opportunities; and is able to think through any complex
implications for the business.
6. Commercial Aptitude
- the entrepreneur keeps up to date with developments in the sector; seeks out best practice; and
identifies and seizes opportunities that are not obvious to others.
7. Decisiveness
- the entrepreneur resolves issues as they arise; does not get bogged down in analysis during decision
making; and responds flexibly to deal with changing priorities.
8. Optimism
- the entrepreneur persists in pursuing goals despite obstacles and setbacks; operates from hope of
success rather than from fear of failure; and sees setbacks as due to manageable circumstance rather than
a personal flaw.
9. Customer Sensitivity
- the entrepreneur builds trust and long term relationships with customers; generates an expectation of
high level of customer service; and regularly exceeds customer expectation
10. People Focus
- the entrepreneur creates common purpose with colleagues through shared vision and values; walks the
talk; sees and values the best in others; builds the total capability of the immediate and wider team; and
always considers the principles of inclusiveness in planning and dealing with others

THE FILIPINO ENTREPRENEURS

 All growth springs from the beginning. Major historical changes did not occur overnight—they
happened in gradual stages, through slow, protracted movements. The same applies in the world of
business.
It is said that the great entrepreneurs are the daring ones, the constantly-changing movers—those
who, despite humble beginnings, persisted with grit, drive and guts, who trusted their inner voice against
doubt, who believed in their vision and strived to be better, and who decided to take a step, which made
all the difference. To name a few, we have:

1. Socorro Ramos – National Book Store

Socorro Ramos entered the publishing and retail industry by working as a salesgirl at a bookstore. At the
age of 19, she opened National Book Store in Escolta with her husband with a capital of P200, selling books and
school supplies to students. At that time, Manila was under the control of the Japanese, who imposed censorship
on books and periodicals. To augment their earnings, she and her husband resorted to selling other items like
candles and soaps.
After the post-war boom proved profitable for the company, ushering in bigger revenues, the Ramoses opened a
nine-story building along Avenida. At 95, she still believes in the time-honored tradition of “hands-on approach”
in business. She even designed the company’s logo herself.

2. Edgar Sia – Mang Inasal

Hailing from Iloilo City, Edgar Sia dropped out of college to pursue his own laundry and photo-
developing business at the age of 19. In 2003, 26-year old Sia decided to open the barbecue fast food restaurant
Mang Inasal—Ilonggo for “Mr. Barbecue.” The first branch was built at a mall parking lot in his home city.
The restaurant took off. When Tony Caktiong heard about Sia’s burgeoning business, he decided to buy Mang
Inasal for a total of P5 billion. Sia eventually put the sales of Mang Inasal to other investments like banking and
healthcare. At 42, he’s considered the country’s youngest billionaire.

3. Milagros, Clarita, and Doris Leelin – Goldilocks

With only two cake displays and ten employees, Milagros, Clarita, and Doris Leelin started Goldilocks at
a 70-sq-m building space in Makati. Sisters Milagros and Clarita loved baking and decided to pursue their passion
into business. With the help of their sister-in-law Doris, the Leelins opened their first branch.
In 1991, Goldilocks launched its franchising program. As of 2015, the bakeshop chain had almost 400 stores
across the country, with other branches in the USA, Canada, and Southeast Asia. From a modest capital of
P66,000, Goldilocks is now a multi-million food enterprise with more than 4,000 employees.

4. Araceli and Jun Manas – Hen Lin

Using the recipes they learned from a Chinese chef and a capital of P30,000, Araceli and Jun Manas
started Hen Lin in 1983. Jun worked for an insurance firm while his wife Araceli worked in a bank. The couple
had to learn the intricacies of the business themselves. At night, they practiced making siomai or dumplings. 
The Manas couple opened the first Hen Lin store in SM Makati, which was well received for its delicious dim
sum offerings. 30 years on, Hen Lin is popular in many malls, offering various products such as hopia, noodles,
congee, rice toppings, and breakfast food. 
THE PROFILE OF A FILIPINO ENTREPRENEUR
According to Manny Aligada, Head of Corporate and SME Segments-Globe Business, Filipinos
possess some traits and qualities that make them good entrepreneurs such as:

Practicality
and
Common Sense

Passion
Value
about
Oriented
Business

THE FILIPINO
ENTREPRENEURS

A Leader Confident
and and
An Innovator Self Reliant
Hardworking
and
Goal-Oriented

 Practicality and common sense.

The most successful Filipino entrepreneurs are not necessarily those who have the best education, or
have an impressive academic record. Some of them, in fact, never even finished grade school.  So how
come they are now successful businessmen?
Filipino entrepreneurs have what we might call street-smarts and a great deal of common sense.
They are practical thinkers. They make decisions based on what they know about human nature from
experience. They are not only able to come up with good products but, more importantly, they know
how to relate to their customers and give what their customers want. You really cannot learn such skills
from a book or in a classroom.
 This is practical knowledge that you gain by relating to actual customers and trying your own hand
at a business. In other words, entrepreneurs develop their street-smarts and sharpen their common sense
through experience. They learn from both their successes and their mistakes. That is what makes them
effective entrepreneurs. Filipino entrepreneurs are also practical when it comes to money. They make
sure that they get maximum profit for the lowest possible cost.

 Passionate about business.

When a Filipino entrepreneur decides on what business he will establish, usually it will be
related
to something he or she is passionate about. This passion drives him to learn everything possible about
the products or services he is offering to customers. The same passion also gives the Filipino
entrepreneur a strong commitment and involvement in his enterprise.
Filipino entrepreneurs are all in business to earn for themselves and their families. However, the
most successful ones have the passion that fuels their minds, emotions and bodies to make the business
grow. This passion reaches the point where the business is no longer just about the bottom line; the
business itself brings fulfillment and happiness to the entrepreneur. This proves that if one is passionate
about one’s enterprise, then one will find the resources to make it successful for its own sake.

 Confident and self-reliant.

The Filipino entrepreneur is always hands-on and self-reliant. When he is just starting out his
business, he is practically able to do everything involved in running it-from finding the best suppliers to
renting the place of business, to the marketing, selling and customer relations, and even accounting.
All this would not be possible without the entrepreneur’s supreme confidence in himself or herself.
Filipino entrepreneurs trust their own judgment and their own capacity to run their businesses.
They are able to take calculated or even daring, seemingly unwise, risks. They know that while they can
get the best advice, the best research, ultimately, the success of the business depends on their own
judgment.

 Hard-working and goal-oriented.

No one can doubt how hardworking the Filipino entrepreneur is. His involvement in his business
is nearly absolute, to the point that his personal time for himself and his loved ones is compromised. He
is also goal-oriented, and has the discipline to set smaller goals that he will accomplish in order to meet
his final objective.

 A leader and an innovator.

The most successful Filipino entrepreneurs have excellent leadership skills. He is able to
convince and influence his employees and his customers positively. He is also able to innovate-to come
up with novel solutions when a challenging situation arises.

 Value-oriented.
The Filipino entrepreneur has a set of values that guides him in doing business. The greatest
value for a Filipino entrepreneur is his family.
A Filipino entrepreneur, no matter how successful he has become, never loses sight of why he is
striving to make his business thrive and grow—he is doing it for the well-being of his family