Entrepreneurship of an enterprise.

For example, the tax imposed by the Bureau of Internal Revenue on the
online sellers of commodities affects the production of goods and/or services of an enterprise.
Quarter 1
Module 0.1: Introduction to Entrepreneurship 2. Personality factors
These are the traits possessed by an entrepreneur.
Intrapreneur 1. Drive
These are usually employees within a company who are assigned a special idea or project
An entrepreneur is self-motivated enough to pursue his chosen course without relenting even
and are instructed to develop the project like an entrepreneur would.
in the face of adversity. If he fails in his first attempt, he makes another attempt.

Intrapreneurship 2. Critical thinking

Activities that occur within a firm or large organization which includes corporate venturing, An entrepreneur’s job involves decision-making and problem solving. A man with superior
when large entities spin off organizations. thinking ability can see through the maze of information (or disinformation) brought before
him.
Entrepreneur
This refers to an individual or groups of individuals that act independently, or as part of a 3. Human relations ability
corporate system, that create new organizations or instigate renewal or innovation within an An entrepreneur possesses high social awareness and ability to build relationship with others.
existing one.
4. Ability to communicate
In other book, it refers to those innovators who “undertake” the risk of new enterprises and Communication skill is a very important characteristic that an entrepreneur must possess in
generate new ideas to create unique and potentially profitable solutions to modern-day order to succeed.
problems.
5. Technical knowledge
An entrepreneur must have familiarity of the business venture he is going to undertake.
Entrepreneurship
An economic activity of an entrepreneur who is always in search of something new to exploit
6. Reasonable risk taker
new ideas into gainful opportunities by accepting the risk and uncertainty of the enterprise. It
When a person starts a new venture, he has already begun to assume the risk of business
covers the occurrence of organizational innovation or creation of new products that occurs
failure. In view of the risk-taking abilities of entrepreneurs, they make things happen rather
inside or outside the existing organization (Cuervo, et al., n.d.).
than let them.

Enterprise 7. Self-confident
A business or an establishment created by an entrepreneur. Entrepreneurs have strong faith in their abilities. They believe they can be the best in their
field. They do not accept things as they are, because they believe they can do things better.
Factors Affecting Entrepreneurship
8. Goal setter
There are several factors that affects entrepreneurship such as psychological, economic, An entrepreneur usually has a specific target and because he is persistent to achieve a
social, and cultural factors, but those factors can be categorized only into two factors to wit, certain target, he creates strategies and action plan.
environmental and personality factors (De Guzman, 2018).
9. Accountable
An entrepreneur takes full responsibility of whatever will happen to the enterprise.
1. Environmental factors
These factors relate to the place or conditions in which an entrepreneur has to work. Factors 10. Innovative
such as economic and social conditions, political climate, legal system, and market situations An entrepreneur always seeks for something new and useful product or service. He always
are just few examples of environmental factors that significantly affect the economic activities strives to discover new things or strive to improve existing products or service.
 The action or process of applying a new method, looking for new ideas or developing a new
3. Biological factor product that will alleviate the living condition of an individual.
This factor is something new. The writer of this module decided to include biological factor
since many enterprises had been affected by the COVID-19 pandemic. This pandemic is a Management
kind of viral respiratory infection that has no cure yet at the time of this writing. Various The process of controlling or dealing with people or things.
enterprises and commercial establishments stay closed, work stoppage occurred, and there
was a limit in mobility of almost everyone in the entire world. However, other businesses The Functions of Entrepreneurs
strive because of this factor such as the manufacturers of alcohol, personal protective
equipment, and face masks. Entrepreneurs of this sort were able to design an innovative 1. Innovation
product. Innovation is an integral tool of entrepreneurs. Innovation means turning a certain object into
something new and useful through the maximum exploitation of available resources.
Core Competencies in Entrepreneurship Innovation is the creation of nothing into something. In other words, innovations turn a scrap
1. Economic and dynamic activity material into a usable form.
Entrepreneurship is an economic activity because it is concerned in the creation and
operation of an enterprise with a purpose of creating value or wealth through maximum The Water Gasoline
utilization of scarce resources. This value creation activity is performed continuously in the Noli Dazo, the inventor of "Tubig na Gasoline" or "Dazo Water Fuel Hydrogen" made
midst of uncertain business environment. Hence, entrepreneurship is regarded as a dynamic him an outstanding Filipino inventor of the Philippines in the field of innovative products
force (De Guzman, 2018). invention. Dazo discovered a way to make a vehicle run using nothing but water. According to
him, as hydrogen fuel has around three times the power as standard diesel or petrol, it would
2. Innovation be beneficial to drivers who particularly operate jeepneys and tricycles.
Entrepreneurship involves continuous search for new ideas. It compels an individual to It also produces a lot of steam that cools the engine and get rid of old carbon deposits inside.
continuously evaluate the existing modes of business operations so that more efficient and Normally, a car can only burn around 70 percent of injected fuel, and the remaining 30
effective systems can be evolved and adopted. In other words, entrepreneurship is a percent is often emitted smoke in the air (Cruz, 2017).
continuous effort for synergy to ensure optimization of performance in organizations (De
Guzman, 2018). 2. Assumption of Risk
An entrepreneur is a risk taker. He is willing to take the challenge of either failing or
3. Profit potential succeeding. His willingness to take risk allows him to march ahead through his initiatives in
Profit potential is the ability of a product or service to generate revenue which, after discovering new things. However, although entrepreneurs are risk takers, they do it cautiously
expenses, leads to net income. and reasonably. Entrepreneurs gather complete data about the situation, analyze the data
and make their decisions. Since they are confident in their abilities and optimistic in the
4. Risk bearing results of their decisions, they are not afraid to make difficult decisions. For them, without
There are always uncertainties in every business enterprise. An entrepreneur must be willing taking the risk, any venture could not be proven as successful.
to undertake a calculated risk arising from the creation and implementation of new business
ideas. These ideas are always tentative and could result to either positive or negative
outcome.
Henry Ford
Entrepreneurship Henry Ford is a famous inventor of automobile. He was very imaginative and a risk-taker. He
even dropped prices so steeply that he risked taking losses, yet he managed to meet the
voluminous demand for Model T’s. In order to satisfy consumer wants, Ford had to take it to
Quarter 1 the next level with a do or die attitude. Henry Ford even cut down the working hours and
Module 0.2: Introduction to Entrepreneurship increased minimum wages for his workers so that they could work for a longer period of time
before quitting.
Innovation
3. Research
Doing research is the application of accumulated knowledge into practice through An entrepreneur accelerates the economic development of a country by discovering new
methodology. This is usually applied by entrepreneur. Before taking a leap, he did a lot of uses of available resources and maximizing their utilization. Through this process,
groundwork which involves considering a variety of options, analyzing weaknesses and employment is created and the living condition of the people is improved.
strength of such options by applying analytical techniques, testing their applicability,
supplementing them with empirical findings and finally choosing the best alternative. Araceli and Jun Manas – Hen Lin Araceli worked in a bank while Jun Manas worked
in an insurance firm. They started Hen Lin in 1983 by using the recipes they learned from a
Angelo Casimiro: Filipino Teen Invents Electricity-Generating Shoes Casimiro, has been Chinese chef with a capital of P30,000. 00. The couple had to learn the complexities of the
known online for his Electricity-Generating Shoes. According to him, being an innovator isn’t business themselves. At night, they practiced making dumplings or siomai. The Manas
enough. He said that he studied film and also got into photography. Then he incorporated couple opened the first Hen Lin store in SM Makati, which was well received for its delicious
filming, photography, and lighting with his inventions in order to use it efficiently to spread his dim sum offerings. Hen Lin became popular in many malls 30 years later, offering various
projects. He also studied some concept in marketing in order to sell his idea. He keeps on products such as hopia, noodles, congee, rice toppings, and breakfast food
learning and tries to apply his newly gained knowledge into his projects (Villamera, 2018). ([Link], 2020).
Photo from facebook Photo from [Link] 6

4. Development of Management Skills

Types of Entrepreneurs
Managerial skill is necessary for entrepreneurs. The works of managers involves planning,
There are various types of entrepreneurs depending on the level of willingness to create
organizing, staffing, directing, controlling, and coordinating the activities of the enterprise. His
innovative ideas. The book authored by De Guzman, titled Entrepreneurship, provides
skill gets further strengthened when he engages himself in establishing the balance between
various types of entrepreneurs as follows:
his organization and its environment.
1. Innovative entrepreneurs
Joe Magsaysay – Potato Corner The young Magsaysay left school to bust tables, These entrepreneurs have the ability to do new things or do the same things in a new and
wash plates, and work on the cash register at a fast-food chain. In a few years, he became a creative manner. It may be an introduction of a new product or service, a new method of
manager, handling five stores. With his background and skills in store management, production, finding new source of materials or discovering new markets, etc. Leandro Leviste
Magsaysay’s friends asked him to handle Potato Corner, of which he was a co-founder. They As electricity rates in the Philippines are among the highest in Asia, Leviste saw this as an
pooled their money together and started the food cart business in 1992, offering franchises opportunity and founded the Solar Philippines, the Southeast Asia’s largest and only
left and right. Today, Potato Corner has more than 550 stalls in the Philippines and around integrated solar developer, investor, manufacturer and procurement and construction (EPC)
the world ([Link], 2020). solar company. Solar Philippines buys its panels from different suppliers and then provides its
customers with financing, installation, and engineering. Millions of households throughout the
5. Overcoming Resistance to Change Philippines currently enjoy the benefits reaped from the solar farm the Solar Philippines
It is common for people to resist changes. Every change alters the existing behavioral pattern operates ([Link]., 2020).
of an individual. The work of an entrepreneur is to encourage the people to accept the
changes by means of fixing his ideas at his own level. It is only after successful 2. Imitating Entrepreneurs
implementation of these ideas that an entrepreneur shares it for others’ benefit. Upon The imitating entrepreneurs are those who copy the new inventions of innovative
learning that an entrepreneur’s product of service will be meaningful for them, it is then that entrepreneurs. They do not make any innovations by themselves, and they just imitate the
people begin to patronize the entrepreneur’s product or service. processes, technology and methods pioneered by others. These entrepreneurs do not have
enough resources or industrial base that hinders them for new innovations. Thus, these
Personal Computer For a time, people feared computers. The 1996 book Women and entrepreneurs are suitable for the underdeveloped areas where they can imitate the
Computers claimed women were afflicted with what it called computerphobia, a panoply of combinations of inventions that were already established in the developed areas in order to
conditions that reflected a fear of touching or damaging the computer, and an aversion to boost their industry. Image from [Link] Photo from [Link] Photo from [Link]
discussing or reading about it. The book also reported that women felt threatened by the 8
computer and were afraid of becoming "a slave" to it (Nguyen, 2016). The Atlantic found that
computerphobia popped up in magazines in the 1980s. Today, computers are more user- 3. Fabian Entrepreneurs
friendly and intuitive. These entrepreneurs are skeptical about the changes to be made in the industry. They do not
start any inventions but follow only upon learning that the new invention is successful. They
6. Catalyst of Economic Development
wait for some time before the innovation has been proven worthy by others thus avoids loss
due to its failure. The content and structure of the business plan are almost the same as those of the feasibility
study. The data shown in the feasibility study are the same set of data presented or used in
the business plan. Nonetheless, the business plan presents a more detailed discussion of
how the business will be undertaken and operated.
4. Drone Entrepreneurs
Since these entrepreneurs are very conservative, they are reluctant to change and do not MAJOR PARTS OF THE BUSINESS PLAN
want to make any changes in the organization. They are happy and contented with their There is no universally accepted standard format or structure of the business plan.
present business status and do not want to change even if they are suffering the losses. They 1. Introduction 2. Executive Summary
just continue to operate in traditional ways. 3. Environmental Analysis 4. Business Description 5. Organizational Plan 6.
Production Plan
5. Social entrepreneur 7. Operation Plan 8. Marketing Plan
These are the people who pursue novel applications that have the potential to solve 9. Financial Plan [Link]
communitybased problems. These individuals or organizations are willing to take on the risk
and effort to create positive changes in society through their initiatives. Social entrepreneurs Introduction
seek to produce environment-friendly products, serve an underserved community, or focus on The introduction presents the general perspective of the business. It may consist of one to
philanthropic activities. The examples of social entrepreneurship include educational two pages. It includes, among others, the following sections:
programs, microfinance institutions, providing banking services in underserved areas, helping 1. Proposed Name of the Business
orphaned children, etc. The main goal of a social entrepreneur is not to earn a profit, but 2. Address of the Business
rather to implement widespread improvements in society. 3. Name of the Owner or Owners
4. Description of the Business
Quarter 1 5. Location of the Business
Module 1: Introduction to Business Plan Preparation 6. Funding Requirement and Source

In case the consulting team prepares the business plan for prospective owners or investors,
Business Plan the section Statement of Confidentiality is added as the last section.
-is a detailed and integrated written document that describes the various activities
involved in opening and operating a new entrepreneurial venture. Proposed Name of the Business
-it is a road map that provides direction so that business can plan its future and avoid The formulation and drafting of the proposed business name are not as simple as it sounds. It
road bumps. is a delicate and important entrepreneurial task. Remember that the name of the business
may exist in the market for the many years. Careful and in-depth planning is of prime
Feasibility Study importance. The proposed business name must:
Serves as the forerunner of the business plan. 1. Reflect the business identify and image
2. Promote the philosophical values and culture that the business values the most
Two Major Tests to be Conducted every time a New Business Idea is Created 3. Profess the brand identity of the product
1. Test of Possibility 4. Attract or influence the target costumers
2. Test of Feasibility
At least three suggested trade names must be submitted to the department of Trade and
Test of Possibility Industry for approval and registration.
New business should have a positive result, so that the test of feasibility or viability will be
conducted. Address of the Business
It is important that the address of the Business is correctly written because all business
Business Plan versus Feasibility Study correspondence is mailed to the business address. Raw materials and other manufacturing
The primary objective of the feasibility study is to determine whether the proposed business is supplies are also shipped by the seller to the designated business address.
feasible or not in all areas. If the outcome of the feasibility study is positive, then the
entrepreneur prepares the business plan.
Nowadays, it is also necessary for the business to have an e-mail address to facilitate building, fixtures, equipment, supplies, and working capital. This section also presents the
electronic communication between the business and the customers, suppliers, creditors, and source or sources of funds. The initial cost of the investment may be provided solely by the
other significant parties. owner or owners or partly by the owner and creditors. The estimated period to settle the
funding source provided by the creditors must also be mentioned.
Name of the Owner
The name of the owner must be properly stated. In a sole proprietorship, there is only one Quarter 1
owner. In case the venture is a partnership, the names of the partners, including the extent of Module 1A: Developing a Business Plan
their liabilities, must be indicated.
TWO TYPES OF BUSINESS PLAN
For example, if a partner’s must be properly mentioned. For business ventures that will
operate as a corporate entity, the names, nationalities, and addresses of the incorporators
must be given. Incorporators are persons who originally formed the corporation. DEHYDRATED PLAN
A short form of a business plan that represents only the most important issues and
Description of the Business projections.
A brief description of the business must include information about the type of product or
service that the business intends to produce or provide. It may include a brief information COMPREHENSIVE PLAN
about the ultimate mission, vision, and objectives of the business. The other products or A full business plan that provides an in-depth analysis of the critical factors that will determine
services that the business plans to produce or provide must also be mentioned in the a firm’s success or failure, along with all the underlying assumptions.
description of the business.
THE COMPREHENSIVE PLAN
Location of the Business I. Introduction VI. Production Plan
There are no rigid rules in the selection of the business location since several variables affect II. Executive Summary VII. Operational Plan
the selection of the business location. The basic entrepreneurial consideration is to place the III. Environmental Analysis VIII. Marketing Plan
proposed business in a strategic location that will assure competitive advantage. IV. Business Description IX. Financial Plan
V. Organizational Plan X. Appendix
What is the difference between the sections Address of the Business and Location of the
Business? OR

The former simply states the exact business address. No additional description is provided to I. Introduction VI. The Product
highlight the exact business address. The latter indicates the reason/s for the selection of the II. Executive Summary VII. The Enterprise
location. In case the processing plant is not within the vicinity of the business, its exact III. Business Proponents VIII. Financial Forecast
location must be described. IV. The Target Customers IX. Environmental n
V. The Market Regulatory Compliance
The following factors should be considered when deciding on the location of the proposed
business: BUSINESS PLAN (made simple)
1. Introduction
1. Proximity to the target customers 2. Executive Summary
2. Distance from the sources of raw materials, labor, and utilities 3. Marketing Plan
3. Availability and cost of transportation 4. Organization and Management
4. Peace and order situation 5. Financial Plan
5. Presence of direct competitors 6. Appendix
6. The geographic and climatic conditions
1. INTRODUCTION
Funding Requirement and Source It is written in paragraph form stating salient details about the business. The introduction
The estimated total initial cost of the business venture must be clearly indicated. It should presents the general perspective of the business. It may consist of one to two pages.
include the projected breakdown or allocation of the total cost, e.g., how much will be for
2. EXECUTIVE SUMMARY directors (if you have one) and support professionals. Start by indicating your business
Although executive summary is commonly the last section to be written after all other major structure (i.e., partnership or LLC), and then list the team members.
parts have been completed, it is the next major part of the business plan after the
introduction. It points out the overall highlights of the business plan as well as a bird’s-eye
view of its sections. However, the executive summary must not, in any manner, provide a
summary of the different major sections of the business plan. It must be written in simple Board of Directors
language that can be easily understood and at the same time attract the attention and A board of directors is another part of your management team. If you don't have a board of
influence the decision of the reader. directors, you don't need this information. But even a one-person business could benefit from
a small group of other business owners who might be willing to provide you with the
3. MARKETING PLAN feedback, support, and accountability that comes from an advisory board.
It describes the user benefits of the product or service and the type of market that exists. The
marketing plan details how the proposed business will sell its product to the target Support Professionals
consumers. It may consist of some or all the following important sections. Especially if you're seeking funding, let potential investors know you're on the ball with a
lawyer, accountant, and other professionals that are involved in your business. This is the
MARKETING MIX 7P’S place to list any freelancers or contractors you're using.
PRODUCT, PLACE, PRICE, PROMOTION, PEOPLE, PACKAGING, and POSITIONING
Financial Plan
Quarter 1 The fifth major section of dehydrated business plan is the financial plan. It accumulates and
Module 1B: Developing a Business Plan describes all the data expressed in monetary units from the other sections of the business
plan.
A financial plan is simply an overview of your current business financials and projections for
Organization Plan
growth. Think of any documents that represent your current monetary situation as a snapshot
The organization plan provides a detailed description of the business in terms of the
of the health of your business and the projections being your future expectations.
following:
1. Form of the business organization
2. Liability of the owner or owners
SALARY REPORT
3. Organizational structure The Salary report defines what each individual and job role is paid based upon their value to
4. Roles and responsibilities the business and effectiveness in their role.
5. Salary requirements
PRODUCTION COST
What to Put in the Organization and Management Section ? The production cost report summarizes the production and cost activity within a department
for a reporting period. It is simply a formal summary of the four steps performed to assign
This section of your business plan covers two main areas: costs to units transferred out and units in ending work-inprocess (WIP) inventory.
The organization, or how your business is structured, and the people involved
The management team or details about what your team brings to the business Within these INCOME STATEMENT
sections, you have specific areas to cover about how your business is structured and who's An income statement is one of the three (along with balance sheet and statement of cash
involved. flows) major financial statements that reports a company’s financial performance over a
specific accounting period. Net income = (Total Revenue + Gains) - Total Expenses +
Organizational Structure Losses.
The organization section sets up the hierarchy of the people involved in your business. It's
often set up in a chart form. APPENDIX
Appendix The appendix of a business plan is usually the last section to appear in the
The Management Team business plan. Although not required, a well-structured appendix can go a long way toward
This section highlights what you and the others involved in the running of your business convincing your reader you’ve got a great business idea, or indeed that you have thoroughly
brings to the table. This not only includes owners and managers but also your board of thought through your idea.
The appendix of a business plan is the place to include any additional documents that you
want to use to give your reader a feel for your product, marketing, services and so on. It’s
also a good place to include any additional tables or charts that you didn’t want to include
within the content of the plan (after all, the simpler the plan, the better, right?), but that you
feel may help your reader understand your business better.