CORDILLERA CAREER DEVELOPMENT COLLEGE

COLLEGE OF BUSINESS EDUCATION AND

ADMINISTRATION
Buyagan, Poblacion, La Trinidad, Benguet

LEARNING MODULE
IN ENTREPRENEURIAL MINDSET
for remote teaching and learning use only

PREPARED BY: JEAN N. TINDUNGAN and KRISTINE G. PAAYAS

AUGUST 2020

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 INTRODUCTION

Many of us Filipinos see education as a means of becoming successful. You often

hear your parents reminding you of being a diligent student in school and working hard so
you can land reputable position in a company or in the government, as these equate to
“success”. Living abroad has been traditional notion for all of us as a measure of success.
Nowadays, however, there are some Filipinos who see another path to
success—entrepreneurship.
This course will provide you with understanding of the nature of entrepreneurship
and orients you towards an entrepreneurial mindset. It introduces theories and concepts of
what is the role of entrepreneur, as well as creativity and innovation in entrepreneurial
activity. This will establish your knowledge on the theoretical approach in designing your
own business and will prepare you too in establishing and managing your own business.
The creation of this course aims to deliver you the concepts, principles, theories
and real-life applications, and core competencies of entrepreneurship for you to enhance
your knowledge in managing a business. This module aims to introduce to you the value
of entrepreneurship and show you how important it is in an economy or society. It is hoped
that you will find hope and inspiration with the topics in this module.
So, Welcome to your subject Entrepreneurial Mindset!
The key to succeed in this subject is for you to take it seriously. Allocate a certain
time of your day to focus on reading your module, viewing the video lessons, answering
the self-assessment questions, and doing the required assignments. By doing this, you
will finish your activities on schedule.
Please read as well your Course Guide thoroughly for you to have a clear roadmap
of this subject’s course policies, expectations, and requirements. Should you have any
questions, concerns or inquiries, please do not hesitate to contact me through the contact
information provided in your course guide.
Good luck and happy learning!!

ACKNOWLEDGEMENTS

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 I would like to thank you, our students, for choosing to enroll this First Semester of
the AY 2020-2021 amidst the global pandemic that we are facing today. The creation of
this learning material holds you as its inspiration to make it possible. Extend as well my
gratitude to your parents, guardians and to whoever supports you in your studies. Let us
work together for you to finish successfully this subject.
Also to our dean, Mary Ann M. Dampilag, who have assisted and guided us in
creating this module, to the CCDC team responsible in collating the learning materials and
making sure that these are complete and thereafter taking care of the distribution of the
learning packages.
Thank you very much!

Chapter 1 Entrepreneurship Development

At the end of this chapter, you can:

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  Explain the underlying theories of how economy grow and develop.
 Discuss the importance of entrepreneurship in general, including its economic
implications.

Lesson 1 Economic Development and Growth Explained

Why do we need to understand economic growth? A developing country, like the
Philippines, would need such an understanding to help in its efforts to develop workable
ways or strategies to achieve economic prosperity.

Watch the video lecture in the USB with file name: EDGE

Theories that explain how economies grow

1. General Theories
Theories viewing economic growth as a natural and inevitable process.
2. Economic theories
Theories explaining economic development as a rational process brought about
when men respond to opportunities in the environment as to promote their own self-
interest or materials.
3. Socio-psychological theories
Theories viewing economic development as result of seemingly economically
irrational yet psychologically and sociologically satisfying activities of enterprising men.
General Explanations of economic development
1. Economic development proceeds according to a master plan or “Law of nature”
SPENGLER (1932) – explained economic development as a natural thing that
happens to an existing culture: it is a part of life and is something to be expected.
Herbert Spencer – Viewed society as an organism constantly in the process of
evolution. As it evolved, it increased in complexity since new institutions developed and
the roles and functions of social institutions became increasingly specialized. The result is
economic development
2. Economic development is brought about by an “Invisible hand”
Adam Smith (18th century) –while individuals seek to work for their own personal
goals, they unknowingly promote what is best for all. It is as if these individuals were led to
such actions by an “Invisible hand” to the interest of the community or society as a whole.
Any society can be made to prosper with little or no intervention from government
because economic development is brought about as a natural course of think.

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3. Economic development is brought about by “Cultural Diffusion”
As one culture that has begun to use new techniques interacts with another that
has not been exposed to the technique, the former is able to influence the latter to discard
old ways and adopt new ones.
4. Racial heritage determines the economic development of a people
Racial characteristics make some people more energetic, thus, allowing their
countries to be far more developed than other does.
5. Climatic conditions determine the energy levels of people and in turn, its rate of
development.
Ellsworth Huntington (1915) wrote that most of the great civilizations flourished in
the tropics or the far north. His observation and studies led him to conclude that extremes
of temperature as well as high functions of climatic conditions would have a detrimental
effect on the energy levels of people in the countries experiencing such climatic extremes.
6. Challenge of the Natural Environment is responsible for rise of civilization
A.J. Tonybee, a study of history (1947) – traces economic and cultural changes to
a combination of natural (geographic) phenome and socio-psychological pressure of
stimuli such as new soil to exploit; living in a frontier position; and prejudice of society
towards a minority group.
Economic Explanations for development
1. Technology Improvements and division of labor lead to development.
Adam Smith believed that the invention of better machines and equipment brought
about increased productivity which together with specialization or division of labor, made
economic growth possible.
Division of labor leads to an increase in dexterity or skills among workers; reduced
time necessary to produce commodities; and the invention of better machines and
equipment.
2. Population changes affect development
David Ricardo says population increases eventually lead to stagnation or a final
stationary state of the economy. While, John Maynard Keynes (1936) capitalists or
entrepreneurs are most likely to invest their resources when there is a demand for the
commodity. Therefore, with increasing demand by an increasing population, capitalists
would likely to invest more.
3. Entrepreneurship is an important factor in development
Economists recognized that for production to take place, someone had to mobilize
all resources (land, labor, and capital) of the enterprise. They called this individual the
entrepreneur, and his activity, entrepreneurship.

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 The entrepreneur was viewed as either a proprietor, landowner, investor, or
organizer of the guided only by consideration of profit or return on investment.
Socio-Psychological explanation of development
In many instances, people engage in enterprise even if it seems that they will not
gain materially or that the venture is without bright prospects. Apparently, there are
entrepreneurs who go into business for reasons other than profit or return on investments.
Joseph Schumpeter observed that economic development progressed unevenly and in
sudden leaps, initiated by men who wanted to “promote new goods and new methods of
production, or to exploit a new sources or materials or a new market”, the entrepreneur is
driven by noble motives.
Sociological factors
Max Weber (1904) has attributed the high degrees of economic development in the
West to the Protestant people’s emphasis on hard work as a sacred and God-given duty
and on spending money only for productive purposes.

Work of Talcott Parsons and His Students (1951, 1956, 1958) has been used
extensively by sociologists to describe the change in values held by cultures as they
evolve from traditional to modern economies. According to him Individuals in modern
societies are:
1. Unemotional
2. Interested in themselves
3. able to relate to others in terms of their social roles (ex. As buyers, sellers, middlemen)
or their ability to do a job.
4. Known for their accomplishment (achievements)
5. Able to relate to others in specific economic terms, that is in terms defined and limited
by a labor contract
While members of traditional societies according to Talcott tend to be:
1. Unemotional
2. be more interested in the general welfare of the community
3. Relate to others in terms of their unique qualities (ex. My old classmate, my neighbor,
my wife)
4. Be known for who they are
5. Tie up economic relationships (such as employer-employee) with all sorts of other
relationships involving kinship and political, religious and social structures

Psychological Fators

Economic growth is a product of individual human behavior, that is, of a person’s

decisions, thoughts and actions.
David McClelland (1961) concluded that among the many motives, the achievement
motive does the most in predisposing individuals to vigorous economic activity.

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 Need for achievement (n Ach) the need to do well, not so much for social
recognition or prestige, but for the sense of personal accomplishment it gives an individual
measured against an internal standard of excellence.

SUMMARY
With the preceding discussion on various theories of economic growth, you are now
in a better position to analyze for yourself how relevant the various economic and non-
economic factors are to the economic growth process. Again, remember that while these
views, observation, claims, assertions or beliefs are only theories, they all provide
valuable insights necessary to an understanding of the phenomenon of economic
development.

Questions for self-assessment

1. What are your own standards of life? In other words, what are the things you think you
ought to have, own or experience? Why is it that your chances for attaining these things
are closely associated to the economic growth of the country?

Be sure to answer and submit Assignment 1.1 and 1.2 before preceding to the next
chapter.

References
Serdef, (1998). Introduction to entrepreneurship. Manila: Small Enterprises Research and
Development Foundation, Inc.

Chapter 2 Nature of Entrepreneurship

At the end of this module, I can:

 Identify the origin and nature of Entrepreneurship
 Enumerate contributions of Entrepreneurship to the economy
 Name economists who has contributions in the development of entrepreneurship

Lesson 1: ENTREPRENEURSHIP DEFINED

“Entrepreneurship is living a few years of your life like most people won’t. So that
you can spend the rest of your life like most people can’t.”—unknown

What is entrepreneurship?
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 Entrepreneurship is the ability to determine and come up with the proper combination
of the resources available in the environment and transform this into an output of either
goods or services, and obtain a fair profit at the price the entrepreneur sets. It is the
capacity for innovation, investment, expansion, in new markets, products, and techniques.
With this definition, it may seem that being an entrepreneur is difficult, but it can be
rewarding if the enterprise flourishes. With the success of the enterprise it will not only
benefit the entrepreneur but also the entire society and economy.

Here are the societal and economic benefits of entrepreneurship:

1. Entrepreneurship produces more jobs that equate to an increase in national
income. Millions of unemployed people will have the opportunities to have a decent
occupation.
2. Entrepreneurship amplifies economic activities of different sectors of society. The
sari-sari store near your house, or the coffee shop you frequently visit to drink a cup
of barako is no different with the giant SM of the Sy’s because both businesses
ignites economic activity regardless of their business scale.
3. Entrepreneurship introduces new and innovative products and services. The latest
gadget you bought, the last milk tea flavor you consumed, the latest decorations
your mother bought from the department store are all possible because of the
ingenuity of entrepreneurs. They always introduce new and innovative products
and services.
4. Entrepreneurship improves people’s living standards. How will your hair look if
there are no salon and barbershops? What if there are no sari-sari stores near
you? What if toothpaste was never invented? Thanks to these entrepreneurs who
consistently provide you goods and services to improve your living standard.
5. Entrepreneurship disperses the economic power and creates equality. It balances
the economy by distributing national income to more businesses rather than to only
few monopolies. An example of this is Rising Sun who serves as the supplier of
many sari-sari store in nearby municipalities instead of them putting up Rising Sun
branches, by this activity, income is distributed to many sari-sari owners and not
only to the owner of Rising Sun.
6. Entrepreneurship controls the local wealth and balances development. It makes
sure local resources are used properly and that every area has an appropriate
allocation or resources.
7. Entrepreneurship reduces social conflicts and political unrest. Social conflicts and
political unrest is reduced through various entrepreneurial activities, how? Imagine
if there will only be one Tiongsan branch who can provide us our essential needs
here in Benguet, can it accommodate all of us, probability is not and may lead us
into fighting who gets to have their items first.
8. Entrepreneurship elicits economic independence and capital formation. A country
with more entrepreneurs is highly likely to become financially independent and will
less likely need the help off other countries. Entrepreneurship creates wealth
instead of borrowing health.

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 9. Entrepreneurship is the backbone of the economy. Imagine yourself who doesn’t
have backbone, how does it looks like? That’s how our economy would look like if
there will be no entrepreneurial activity in our country.

Lesson 2 ORIGIN OF ENTREPRENEURSHIP

It is not really clear where entrepreneurship began. Even though the term did
originate from the French, we can say that entrepreneurship began even before there was
a term for it.
Throughout the theoretical history of entrepreneurship, scholars from multiple disciplines
in the social sciences have had difficulty with a diverse set of interpretations and
definitions to concretize this abstract idea. Even though certain themes continually
resurface throughout the history of entrepreneurship theory, presently there is no single
definition of entrepreneurship that is accepted by all economists or that is applicable in
every economy in the world today.

Some schools of thought on entrepreneurship suggests that the primary role of the
entrepreneur is that of risk- bearer in the event of uncertainty and the lack of perfect
information. Role of the entrepreneur is that of an innovator (original French term).

Earliest historical accounts

The earliest historical accounts of entrepreneurs and entrepreneurial activities can be
traced to the great Marco Polo who made the practice of selling his goods to a moneyed
person with both of them signing contract.

In the Middle Ages entrepreneurs were described either as actors or the managers of
large production projects using resources. Those people are called clerics- people in
charge of building castles and fortifications, public buildings, cathedrals, etc.

17th Century
1. Richard Cantillon- Economist and author
- Introduced the term “entrepreneur”
-considers him as the Father of Entrepreneurship
-viewed entrepreneurs as risk- bearer
- Entrepreneurs as the agent who buys means of production at certain prices
in order to combine them into a new product.

2. Jean Baptiste Say- the French Economist

- Entrepreneurs should be leaders
- Claimed that an entrepreneur is the one who brings other people together in order
to build a single productive organism.

Evolution of Term Entrepreneurship (18thcentury-present)

Contributor and Year of

Contribution to Entrepreneurship Thought
Contribution

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 Entrepreneurship refers to the shifting of
Jean Baptiste Say (1800) economic resources out of an area of lower and
into higher productivity and greater yield.
Entrepreneurship involves obtaining information,
Carl Menger (1871)
calculation, an act of will and supervision.
Entrepreneurship is, in its essence, the finding
Joseph Schumpeter (1910) and promoting new contributions of productive
factors.
Entrepreneurship is the reduction of
Harvey Liebenstein (1970)
organizational inefficiency.

Entrepreneurship is the identification of market

Israel Kirzner (1975)
arbitrage opportunities.
Entrepreneurship involves a kind of behavior that
includes initiative taking, organizing and
Albert Shapiro (1975) recognizing social mechanism to turn resources
and situations to practical account, and the
acceptance of risks and failures.
Entrepreneurship is the dynamic process of
Karl Vesper (1980)
creating incremental wealth.

W. Ed Mc Mullan and Wayne A. Entrepreneurship is the building of new growth

Long (1990) organization.
Entrepreneurship is the pursuit of opportunity
Howard Stevenson (1992) beyond the resources currently under one’s
control.
Entrepreneurship is the ability to create and build
Jeffrey Timmons (1994)
a vision from practical nothing.
Entrepreneurship is the process of starting one’s
own, new and small business. It is also the
process of innovation and new venture creation
Peter Drucker (1998) through four major dimensions – individual,
organizational, environmental, process – aided
by collaborative networks in government,
education and institutions.
Entrepreneurship involves the creation process,
requires devotion of the necessary time and
effort, assumes the accompanying financial,
Robert Hisrich (2001)
psychic and social risks, and receives the
resulting rewards of monetary and personal
satisfaction and independence.

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Summary
This chapter was able to define entrepreneurship as the ability to determine and
come up with the proper combination of the resources available in the environment and
transform this into an output of either goods or services, and obtain a fair profit at the price
the entrepreneur sets. It is the capacity for innovation, investment, expansion, in new
markets, products, and techniques. In this chapter you were able to know some of the
contemporary contributors of entrepreneurship.

TEST AND APPLY your Knowledge

1. List 5 names of contemporaries who have contributed in the development of
entrepreneurship.
2. List 3 societal benefits of entrepreneurship not provided in this module.

Be sure to answer and submit Assignment 2 before preceding to the next chapter.

References

Azarcon, E., Areola, A., Arguelles, R., Barlis, M., Dela Peña, G., Drequito, G., et al.
(2008). Entrepreneurship principles and practices: a modular approach(2nd ed.). Baguio
City: Valencia Educational Supply.
Diwa, Entrepreneurship . Legaspi Village, Makati City, Philippines : Diwa Textbook
Serdef, (1998). Introduction to entrepreneurship. Manila : Small Enterprises Research and
Development Foundation, Inc.

Chapter 3 The Entrepreneur

At the end of this module, you can:

 Define who is an entrepreneur
 Categories the types of entrepreneurs
 Enumerate the characteristic of an entrepreneurs
 Discuss the advantages and disadvantages of being an entrepreneur
 Discuss the entrepreneurial functions

Lesson 1 Who is an Entrepreneur?

An entrepreneur is an individual who creates a new business, bearing most of
the risks and enjoying most of the rewards. The entrepreneur is commonly seen

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 as an innovator, a source of new ideas, goods, services, and business/or
procedures.

Entrepreneurs play a key role in any economy, using the skills and initiative
necessary to anticipate needs and bring good new ideas to market.
Entrepreneurs who prove to be successful in taking on the risks of a start-up are
rewarded with profits, fame, and continued growth opportunities. Those who fail,
suffer losses and become less prevalent in the markets.

Watch the video lecture in the USB with file name: C3

 Key Terms:
An entrepreneur has:
1. Ideas – makes these ideas happen or come to life. Sometimes called an
inventor and innovator.
2. Business skills – not only pertain to ideation (generating idea), but also
to the skills of organizing and running a business.
3. Assume risks – knows how to calculate risks and is willing to invest his
resources in a business undertaking he himself conceptualized, without
guarantee or certainty of making additional money out of it, much less
recovering his investment.
4. Desires to make profit – spot opportunities, and turn these into
profitable business ventures. A characteristic that differentiates him from
an inventor or an innovator.

Categories of an Entrepreneur
A. The Manufacturer – who produces useful goods.
a.1 Handicraft producer – produces goods without much machinery
a.2 Cooked food producer – produces goods in cooked state already and ready
to be consumed.
a.3 Processor or subcontractor – ex. Production of components, parts and
supplies
B. The Trader – transfer goods from the manufacturer who produces the goods to the
consumer who buys the goods.
Trading – process of buying and selling of goods and services involving transfer or
exchange of goods and services for money.
b.1 Wholesaling
b.2 Retailing
b.3 Repacking
b.4 E-trading

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 b.5 Vending Machine Operation
C. The Solo Entrepreneur – independent and has autonomy from authority structures.
c.1 Event organizer
c.2 Show host, clown, magician, fireworks specialist
c.3 Writer of specialized reports
c.4 Online consultant
c.5 Online teacher
c.6 Online book publisher
c.7 Online business program creator
c.8 Digital newsletter writer
c.9 Lifestyle entrepreneur
c.10 Plumber, Electrician, House painter, and similar service providers
D. Specialty Service Entrepreneur - Professional services firms sell knowledge and
expertise, while other types of organizations tend to sell tangible products.
This knowledge and expertise can be appealing to small-business owners, who cannot
be experts in everything. They may be comfortable dealing with management, sales and
marketing matters, but they are not schooled in these disciplines. Nor are they
practitioners of them. Similarly, they did not go to law school or pass the certified public
accountant exam. Their business specialty represents their area of expertise – not on
the ancillary issues that have sprung up around it.
d.1 Lawyers
d.2 accountants
d.3 management and marketing consultants
E. The Street Entrepreneur “Streetpreneur” – refers to micro entrepreneurs selling
various home articles and food items to motorists stuck in traffic or business riders at
terminals and stations.
F. The Franchisee “with the least tears and fears” A continuing relationship in which a
franchisor provides a licensed privilege to the franchisee to do business and offers
assistance in organizing, training, merchandising, marketing and managing in return for a
monetary consideration. Franchising is a form of business by which the owner (franchisor)
of a product, service or method obtains distribution through affiliated dealers (franchisees).
f.1 Jollibee
f.2 Ad’ laine
f.3 Minute Burger
f.4 Padi’s point
f.5 starbucks
G. The Serial Entrepreneur - more concerned about spotting new enterprise each time the
one he has set up is starting to go well. They feels the urge to keep finding new products
or services to new or untapped markets. A serial entrepreneur is an entrepreneur who
continuously comes up with new ideas and starts new businesses.
g.1 Steve Jobs (Apple, NeXT, Pixar, Apple)
g.2 Elon Musk (Zip2, PayPal, SpaceX, Tesla, SolarCity)
H. The Social Entrepreneur - those who provide products and services with the overall
desire of creating social good, operating from the perspective of benefitting the people and

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the planet while earning profit. Some are undertaken by non-government and civic
organizations.
“Social Enterprises” – profit is often reinvested into the business rather than
distributed to stakeholders. Innovators who focus on creating products and services
that sole social needs and problems. Goal is to make the world a better place and
not to take market share nor create wealth from the enterprise.

h.1 R2R (Rags2Riches, Inc.), Payatas, Q.C. – produce items out of scrap
materials.
2. Gawad Kalinga Community Development Foundation, Inc. (GK), Bagong
Silang, Caloocan, City – big informal settlers’ relocation site in Metro Manila.
3. Jollibee Corporation Outreach Program – Harnesses groups of farmers to
provide the needs of giant food company for farm products.
4. Zonta Club of Pateros-Taguig – trains women to produce rags from fabric
scraps obtained from nearby garment factories.
5. Girls Scout of the Philippines – girls take part in the production and selling
of handicrafts in their community.

I. The Intrapreneur - the term refers to someone within an organization who

has the entrepreneurial spirit. These employees show the ability to balance
daydreaming and doing. They're the type who'll spend time coming up with
innovative new ideas for your business as well as putting in the effort to
bring those new ideas to life.

These are just some of the categories of an entrepreneur, there’s a lot more categories
out there but this are the most common that you can easily spot in your environment.

Lesson 2 Characteristics of an entrepreneur

Characteristics of Successful Entrepreneurs

Entrepreneurs are a different breed - they think different, act different, and live different
than the rest of society. However, the successful ones all seem to share a few of the same
traits with each other. Here are 12 of the most common:

1. They take what they do seriously.

Entrepreneurs understand that the success of the business ultimately rests upon
their shoulders. When you run a startup, whether or not rent is paid depends on how you
run the business. Because of this, all successful entrepreneurs take their work very
seriously.
2. They make it all about the customer
Customers are why a business exists. Their sales dollars determine the success of
any business. Successful entrepreneurs realize this early on and make their business
about the customers. Studies show that customers are four times more likely to switch to a
competitor if they have a customer service concern versus a price or product issue.
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3. They make the big decisions carefully.
Every decision has consequences, whether good or bad. Over time, those
consequences shape our reality and tell the story of our lives. Entrepreneurs who are
doing well take note and carefully identify the potential long-term effects of each decision,
while seeking counsel before making major decision.
4. They aren’t scared of the road less traveled.
Following the crowd only leads to where others have been before. Successful
entrepreneurs aren’t afraid to venture out on their own with a company and blaze a new
trial. That’s their defining characteristic. Some of the best inventions and designs have
come from the minds of those who weren’t afraid to be different.
5. They harness technology.
Things change constantly, and they change especially quickly in business. To best
serve their customers, successful entrepreneurs keep up to date with the best technology
can offer to them. Take, for example, live chat. It can make a huge difference in your
company’s customer service results and overall growth.
6. They invest in themselves.
You can’t make other people better unless you make yourself better first.
Entrepreneurs who are successful make a point to carve out time from their calendar and
money from their budget to invest in themselves. This investment may be further
education or a well-earned vacation. Either way, successful entrepreneurs find ways to
recharge and propel themselves further.
7. They are constantly learning.
There’s always something you don’t know and something else that has just been
discovered. Both are essential for entrepreneurs. You can’t build a business around
something you don’t know about, and you can’t improve products and services using
outdated methods. Entrepreneurs are always on the prowl to learn more about what they
do and what the competition is working on.
8. They’re not afraid of risks
The best things in life are often found on the other side of a worthwhile risk; in that
way, the best business you can build may be on the other side of possible failure.
Entrepreneurs don’t shy away from the unknown or the uncharted. They know that’s
where the future sales dollars and profits are. While uncalculated risks can cause terrible
consequences, calculated risks are the sweet spot of a new business venture.

9. They’re willing to experience failure

Very few successful entrepreneurs have made it without living through some
failure, large or small. They realize failure is just information about what doesn’t work, not
the end of the journey. They continue trying long after most would have given up.
10. They adapt to the current needs of the customer and market
As conditions and society go through changes, so do the needs of customers. The
successful businesses of tomorrow will be those that learn how to meet those needs
quickly and don't get left behind in the heap of non-adapters.
11. They know how to sell themselves
Successful entrepreneurs know when something is valuable, even if no one else
does yet. They can explain and prove why their product or service is worth the price or
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investment. Finding a way to sell yourself before anyone believes in you or your business
is the key to successful entrepreneurship.
12. They network, network, network
Not everyone is going to be jumping at the chance to use a new product and
service, and some still won’t adopt even after a lot of compelling information. So
entrepreneurs network; not only to find clients, but also to meet others who share their
passion and desire and who can help them go even further.

If you don’t possess any of this characteristics, don’t worry, because these are just few of
characteristics of an entrepreneur.

Lesson 3 Roles and Responsibilities of Entrepreneur

Some people think that the entrepreneur is someone who is engaged in selling,
while others think that he is a middleman who stands between buyer and seller. The
entrepreneur is, in fact, much more than either of these. As you shall see, selling is only
one among the many functions that sets him apart from men of other occupations and
have earned for him the distinction of being the key the country’s bid to progress. Indeed,
without the entrepreneur there can be no development.
Entrepreneurs occupy a central position in a market economy. For it's the
entrepreneurs who serve as the spark plug in the economy's engine, activating and
stimulating all economic activity. The economic success of nations worldwide is the result
of encouraging and rewarding the entrepreneurial instinct.

To enumerate some of the roles of entrepreneur are as follows:

1. Visioning role – sometimes called a dreamer who follows his vision.
2. Implementation role – take practical steps so everyone can live according to the
organization’s mission and direction. Proper implementation of the business ideas will
enable the entrepreneur to harness the talents and skills of the organization’s team
members to pursue the mission, goals and objectives of the business.
5 Functions of Entrepreneur according to Jennifer Warawa:
1. Chief Customer Officer
2. Chief Financial Officer
3. Chief People Officer
4. Chief Executive Officer
5. Chief Innovation Officer
[Link] role – must have a good amount of self-awareness, respect for everyone in
the team, credibility, and empathy.
[Link] role – should be able to measure performance fairly and objectively against
job requirements and standards.

Responsibilities of an entrepreneur
At home, you have your responsibilities as member of the family. As a student you
have as well responsibilities in the school same goes with entrepreneurs. They take also
responsibilities in the economy. To list some are as follows:
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[Link] – innovator who tries to develop new technology, products and markets in the
community. He uses his creative faculties to do new things and to exploit opportunities in
the market. He does not believe in status quo and always in search of change.
2. Assumption of risk – always prepared to assume losses as a result of introducing new
ideas and projects.
3. Research – practical dreamer who takes time to study his moves, including the
groundwork, before taking a leap in his ventures. Finalizes an idea only after considering a
variety of options by analyzing their advantages and disadvantages.
4. Management – use of managerial skills which he develops while planning, organizing,
staffing, directing, controlling, and coordinating business operations.
5. Overcoming resistance to change – he paves the way for the acceptance of his ideas.
6. Catalyzing economic development – accelerating the pace of economic development of
a country by discovering new uses of available resources and maximizing their utilization.

Lesson 4 Advantages and Disadvantages of becoming an Entrepreneur

What are the advantages of being an entrepreneur?

Being an entrepreneur is seriously underrated. There are far more benefits than you might
think. Some of the best are also the most overlooked.

If you’ve been debating the pros and cons of entrepreneurship and starting your own
business, check out these advantages, and you’ll want to quit your job before you finish
reading this.

1. Be the Master of Your Own Destiny

If you are tired of feeling like you don’t have enough control over your
circumstances and opportunities and wonder how to launch a business, then becoming an
entrepreneur might be the silver bullet you’ve been craving.
You are the master of your own financial destiny. You can grow your own startup to
being worth hundreds of millions of dollars. Even billions. Along with that comes a pretty
nice income and additions to your wealth and net worth.
It isn’t just about buying stuff or bragging right either. The most important thing it can buy
you is peace of mind and freedom. Freedom to pursue more of the things you care about
most.
2. It is The Most Sane & Safest Path
While many spend years struggling with the decision of being an entrepreneur,
questioning the sanity of it (and their own sanity), as well as the logic of taking such a
‘risk’, entrepreneurship is the safest and most logical path.

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 Not all of your friends, teachers and family members may agree. Though it is
probably even truer today than it has ever been. It will become even more obvious over
the next few years.
There are no guarantees a degree will hold value, your job will last another day, or a
corporate pension fund will survive the next few years. Betting everything on someone
else’s business is just about the riskiest thing you can do in life. Especially if you aren’t
right at the top with a lot of decision making power. It’s illogical.
2. Live & Die With No Regrets
In the end, we don’t regret the things we tried. We only regret the things we
cowered away from or put off for too long. This is one of the biggest advantages of being
an entrepreneur.
One of the most common of these regrets in entrepreneurship and what it can do
for you. It’s unlikely you’ll meet someone who regrets trying their hand at being an
entrepreneur. That’s true even if their first attempt failed miserably.
3. Make Your Own Decisions & Do It Better
If you constantly notice serious flaws in how other companies do things and are
compelled to take action to do something about it, you are probably a natural
entrepreneur. Give yourself a chance.
Starting your own company means you get to make the decisions. You can do
things better than your old boss or company, and other providers in the market. Stop
complaining. Do something about it. There are probably thousands of other people who
would love what you have to offer.
4. Positive Peer Pressure
As an entrepreneur, you’ll have the power to be the change you want to see in the
world. Maybe that is solving a really huge and pressing crisis. Maybe it is just making
things more efficient. Maybe it is just making daily life a lot easier for millions of people
and families. Or it could be enabling the next generation of businesses to build a whole
new world on your platform.
5. Create A Legacy
When considering the advantages of being an entrepreneur. if you crave leaving a
legacy and your mark on this world, entrepreneurship is a great tool for doing it. It could be
by creating a multigenerational business that lasts for over 100 years. It could be creating
the next platform that all businesses are built on. It could be new landmarks or how we
store our memories. It’s totally up to you.
6. Teach Your Kids To Do The Same
If you have kids or hope to, then you want all of these advantages of being an
entrepreneur for them in their lives and for their families as well. They are going to follow
your example, not words.
You can’t recommend they become entrepreneurs and expect them too if your
actions showed you were too scared to do it all of your life. If you want them to have the
best life possible, get out there and start leading by example today.
7. Empower Other Entrepreneurs
It’s not just your kids or employees you’ll have the chance to influence. It’s other
entrepreneurs too which is something critical to keep in mind as you are thinking about the

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advantages of being an entrepreneur. You will have the opportunity to make a real
difference in the life of other people.

Before deciding to dive in a business, try to consider and look at the cons of being an
entrepreneur:

1. The leave benefits of an entrepreneur are not the same.

When you work as an employee under a traditional employment contract, then
there are leave benefits and holidays for which you may qualify. These are specific times
of the year where you can enjoy being paid while not actually being at work. You might
receive discretionary sick time to use if you feel under the weather or need a mental
health day. Vacation times are paid as well, often taken when you want to get away.
Holidays are paid-time off. When you’re working as an entrepreneur, these options are not
always available.
2. You do not have a guaranteed income as an entrepreneur.
One of the biggest advantages that employees have when compared to those in
the pursuit of entrepreneurism is a guaranteed paycheck. Although there is the threat of
being fired or laid off, the income you receive for your work comes in on a regular
schedule. That means entrepreneurs are working with lower levels of financial security for
themselves and their families. The payment an employee receives often includes a range
of financial benefits for their family as well, including health and life insurance.
3. There are no fixed working hours when you’re an entrepreneur.
When you work in a traditional employment setting, then you are given fixed
working hours with a guarantee of payment. It is a contract outlined between you and the
company that offers compensation at a specific level. If you exceed those hours, then you
can earn additional wages, benefits, or opportunities in the future. Some workers receive
“hours in lieu” that work like vacation time.
4. You are the one required to do all of your updates.
If you’re working as an entrepreneur, then there is an excellent chance that you are
using technology to make things happen. That’s a lovely tool to use when things are up-to-
date. When your firmware needs to update to a different version or the software stops
function, then you stop working until the process completes itself. You could find yourself
losing 2+ hours out of a day trying to fix your tech problems. Unless you budget time for
this on a regular basis, there will be times when you’ll struggle to meet deadlines because
something isn’t working right.
5. There are more responsibilities as an entrepreneur.
When you are active in the employment world, then you are given a specific role or
assignment to complete. You are only responsible to perform the tasks given to you,
which are usually related to the role in which you’ve been hired. There isn’t a need to
worry about the work that others are doing. You get paid for that limited scope or tunnel
vision. You even receive appraisals based on how well you perform in your role which can
often lead to promotions. If you’re an entrepreneur, then you’re responsible for everything
all of the time without exception.
6. There are higher levels of stress as an entrepreneur.

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 You don’t have a guaranteed income as an entrepreneur. There isn’t a boss around
that can offer you advice if you’re stuck on a problem. You might not have any colleagues
to rely on for support. There are plenty of people in this position who are working solo
every day, mired in their home office, struggling to make ends meet. Being your own CEO,
managing your marketing, legal work, and accounting leads to high levels of stress. That’s
why there are some people who like the idea of following this trend, but then discover that
it isn’t right for them.
7. You might need some cash to get started on a new idea.
There are some business opportunities that can be started for next to nothing. If
you’re a sole proprietor who offers a standard service that can be sold online, then all you
need to do is create a website or join a platform, put up your listing, and then start to
market yourself. If you want to start an LLC or corporation, however, then you may need
to have a few thousand dollars at-the-ready to begin the investment process. Most
entrepreneurs start in debt because they need to cover their start-up costs. If you can’t
turn a profit, then you could lose everything when pursuing a dream.

SELF-ASSESSMENT QUESTION C3
Multiple choice. Below are statements that describe concepts related to the term
Entrepreneur. Directly following each statement are choices of concepts being described
by each statement. Read each question by writing this on the space provided before each
item. Should your answer not be found among the given choices, write the Capital E.
________1. The following are roles of an entrepreneur except:
a. Avoid risks
b. mobilize capital
c. introduces innovation
d. makes decision
________2. This refers to quick identification of possible profitable business endeavor
a. risk taking
b. investing
c. opportunity seeking
d. feasibility study
________3. This refers to an entrepreneur’s ability to set realistic and attainable
objectives.
a. Goal setting
b. panning
c. decision making
d. organizing
________4. This pertains to an entrepreneur’s ability to dvelop strong links with other
people and institutions.
a. persuasion
b. networking
c. cooperation
d. collaboration
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________5. An entrepreneur who is sure of himself and his abilities, skills and talents and
usues them when called for without hesitation, is known to be
a. self-reliant
b. self-dependent
c. self-confident
d. self-contained
True of False. Encircle your choice of answer.
T F 1. Being an entrepreneur means that you will be wealthy from the start since there
is an assurance of your profit.
T F 2. Entrepreneurs has the same compensation like the employee.
T F 3. Being an entrepreneur gives you the power to decide on your destiny.
T F 4. You can an entrepreneur if you are not willing to take risk.
T F 5. An entrepreneur can start a business without capital.

Let’s check your answer. Send your answers to our groupchat.

Be sure to answer and submit Assignment 3 before preceding to the next chapter.

Reference:
The Advantages Of Being An Entrepreneur by Alejandro Cremades retrieved from
[Link]
[Link]
[Link]
Azarcon, Areola, Et al., Entrepreneurship Principles and Practices 2nd edition, Baguio City.
Valencia Educational Supply
Asor, W., Entrepreneurship in the Philippine Setting. Manila, Philippines. Rex Book Store,
Inc.

Chapter 4 Wellsprings of Entrepreneurship:

Are entrepreneurs born or made?

At the end of this chapter, you should be able to:

 Relate the development of entrepreneurship values and attitudes with early
life experiences, i.e., family upbringing, childhood training and cultural
influences
 Answer the question “are entrepreneurs born or made?”

Where do entrepreneurs come from? Why did/how do people eventually become

entrepreneur? Are entrepreneurs? Are entrepreneur born or made? These are the
questions that we will now try to answer.
We shall trace the origins of entrepreneurs in terms of their life experiences within
the family and culture experiences where they belong. Then we shall look into some of our
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cultural experiences and find out which ones are helpful, and which ones are not in
preparing us to meet the challenges of an entrepreneurial career. By doing so, we hope to
encourage you to develop certain attitudes and values that help generate entrepreneurial
qualities which, as you may have seen, are the foundations of excellent performance in
business as well as in any other career. Whether you decide to be entrepreneur or not,
you can benefit from developing entrepreneurial qualities in yourself to help you to be the
best of whatever you choose to become.
Are entrepreneurs born or made? In other words, are entrepreneurial qualities
already present in the child when he is born perhaps as inherited characteristics from his
parents, or are these qualities developed through life. Nowadays, however, there is
enough evidence to show that entrepreneurial qualities can be developed early in life to
show that entrepreneurial qualities can be developed early in life as a result of childhood
training in independence and self-reliance, among others, and exposure to certain cultural
values relating to work and industry.

Lesson 1 Early Life Experiences

Psychologists maintain that the first five years are the most influential in the life of
an individual. It is at this time that the social, economic, physical and psychological
atmosphere surrounding the child leaves lasting imprints on his personality.
And what about entrepreneurs? What sort of home atmosphere did they grow up
in?
1. Early training in independence, self-reliance, decision making and hard work.
Studies that looked into the background of successful entrepreneurs reveal that
they have come from homes wherein independence and self-reliant were given premium
value. Evidently, exposure or training of children to self-reliance, independence, decision-
making and hard work early in life has a lot to do with developing entrepreneurship.
2. Early training in business
Exposure to parents who are in business or in related occupations also seem to
help develop entrepreneurship in children.
3. Early training in a craft or trade
Apart from orienting the young towards self-reliance, families ae apparently
important in providing early mastery training in artisanship to children. Such early
exposure has greatly helped many entrepreneurs succeed in a business venture.

Lesson 2 Cultural Values

The emergence of entrepreneur is related to cultural values, or those ideals held by a
community as standards for social or interpersonal behavior. Values upheld because they
are viewed to be conducive or necessary to the welfare of everyone in the group.

People who have studied entrepreneurial origins found that entrepreneurs generally come
from cultures with specific views on certain activities and concepts such as competition,
time, trade, social status, work and money.

1. Ideals of competition
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 Entrepreneurship flourishes under a climate of competition that stimulates the
competing parties to find ways of using and managing their resources more efficiently and
more productively rather than one that encourages unfair trade practices like underpricing,
selling cheap, low quality products and maligning of competition.
2. Time Orientation
Long-range planning and anticipation of future trends are essential for success in
business. Thus, entrepreneurs are future-oriented and usually belong to cultures that
appreciate the value of foregoing immediate profit or satisfaction in favor of large future
rewards.
3. Views on trading
Trading has been the seedbed of many entrepreneur. Many of today’s successful
businessmen started as vendors or traders.
4. Conferment of social ranks
A culture that promotes entrepreneurship is one that confers social ranks in terms
of actual achievements rather than circumstances of birth. An example of this system is
the system of India.
5. Work ethics
The culture must look at work as a duty, and it must value honest, productive labor
while punishing laziness. Example of a culture that values work highly were the countries
of Europe during the Industrial Revolution.
6. Views on Money
The attitude of a culture towards the value of money and thrift seems to encourage
the emergence of many entrepreneurs. A thrifty people which appreciates the value of
money will find it wasteful to spend too much on beautiful but not necessarily durable
products. This attitude further encourages inventiveness or innovation because
entrepreneurs will then try to look for ways to manufacture a given product at lesser costs,
or by using other types of materials, process or equipment.

Lesson 3 Philippine Culture and Entrepreneurship

As you know, our country is very rich in natural resources and human ability. We
are capable of eliminating poverty form our midst through our own initiative. The reason
why our efforts to attain economic prosperity failed in the past is perhaps because we did
not appreciate enough the contribution which each one of us – whether as a manual
laborer, mayor, student or housewife – can make towards development.
Filipinos Values Favorable to Entrepreneurship
1. “Pakikipagkapwa” values promote ideals of entrepreneurship
This trait encompasses our concern of hiya, pakikisama, pakikibagay. At the root of
this value lies all our standards of interaction with others. This trait tells us to treat others
as fellow human beings – every bit God’s creatures as we are.
This favors entrepreneurship because it is against any form of exploitation against
another.
2. Many values promote risk-taking or “lakas ng loob”
Individuals who are without “guts” or who shrink before challenges do not become
entrepreneurs.
 Bahala na
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 As Filipinos we are by nature malakas ang loob, and not timid and fearful as
we were made to believe in the past. In situations where we are uncertain of
our ability to accomplish things, we say “bahala na” and do the best we can,
believing that, “Nasa Diyos ang awa, nasa tao ang gawa”.
 Pakikipagsapalaran
In many instances, especially in the field of making a living, our confidence
or lakas ng loob is justified, because almost all of us are intelligent and
literate enough to read, write and count. We are very quick to learn and find
it easy to adapt to new and strange situations.
 Gaya-gaya
Our ability to learn and adapt to new ways of doing things may also be seen
in our talent for gaya-gaya or imitation. But, for those who are only starting
out in business doing gaya-gaya of other products (mostly imported) do
contribute to the training and preparation of many Filipinos for an
entrepreneurial career.
 Close family ties
In most Filipino families, children are taught the values of honesty, hard work
cooperation and self-sacrifice for the common good, that is, for the sake of
father, mother, brothers, sisters, relatives. The emphasis on “togetherness”
provides plenty of support to any aspiring entrepreneur. If he lacks capital,
the family can pool resources which he can borrow and pay without interest,
if he needs workers, his kin can help out and render service with the loyalty
and dedication which can only come from blood ties.
 Utang na loob, hiya, awa, bayanihan
In business, this may mean that we can count on other people that we know
to buy form us. If they do that on utang (debt), they have to pay because of
hiya or awa.
3. Other values drive us to succeed in enterprise
 Kasipagan. One such value has to do with industriousness or kasipagan which is
an essential characteristics of an entrepreneur.
 Pagtitipid. We also place high value on pagtitipid (thrift).
 Pagtitiis. We are likewise a persistent, persevering person. We do not easily give
up in the face of adversity.
 Pagtitimpi. We do not allow ourselves to display, verbally or otherwise, our
emotions at the slightest provocation.
4. Katapatan as a value promotes ethical business practices.
This trait is very useful in business since exploitative ways are always self-
defeating in the long run. Business deal is a transaction where trust is a silent participant.
The customer trusts that the entrepreneur gives him the right quality and quantity of the
things he buys, and the entrepreneur trusts that the customer pays him the agreed and
correct amount at the right time.
5. Our values promote harmonious labor-management relations.
For his emphasis on katapatan and kalinisan ng kalooban, the Filipino cannot but
be a good manager of his workers. He treats his people with concern. He sees to it that

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there is mutual help and camaraderie in his company, and that his workers find him to be
personal, easy to like and compassionate.
6. Our values promote social mobility
Every Filipino can aspire to be rich and prosperous no matter how hard life is.
There is in fact great mobility among the classes in the Philippines, and people will admire
a carpenter’s son, for example, who has worked hard and become rich enough later on to
own a modest house and drive his own car. This cultural orientation favors the spawning
of entrepreneurial talents.

Practices and Values Deterrent to Entrepreneurship

Here are some traditional Filipino values which hinder the development of the
entrepreneurial spirit among us:
1. Traditional child rearing practices inhibit the development of an independent spirit
Why is such an upbringing dysfunctional to entrepreneurship? Growing up in a
strict, authoritarian environment effectively kills the independent spirit which, is the first
hallmark of a successful entrepreneur.
2. Belief in the existence of all-powerful forces that control all destinies may destroy
entrepreneurial initiative
There are beliefs held by our people for a long time such as “swerte at malas”, “ang
kapalaran, di ko man hanapin, dudulog at lalapit kung talagang akin”, were strengthened
by the circumstances of their livelihood.
3. “Amor propio” disinclines the Filipinos to take full responsibility for his action when he
fails.
As we succeed, we feel good and take full credit for it. But as we fail, we tend to
point the responsibility on another.
4. The “bahala na” attitude if not tempered by intelligent judgment and planning, may lead
to imprudent business decision making.
5. Our family and kin may be very supportive a lot, but watch out, for they can also do
harm to our business enterprises.
6. Colonial mentality impedes the development of a self-reliant entrepreneurship.

Summary:

This Chapter has identified some of the wellsprings or sources of entrepreneurial qualities
in people. As you have seen, early training in independence, self-reliance, decision
making and hard work is important in preparing individuals for entrepreneurship. In
addition, you saw that the values held by a culture are likewise important to sustain
entrepreneurial activities. You were also able to know our own Philippine culture and
found out that it largely instills values favorable to entrepreneurship.
Even if evidence shows that entrepreneurial qualities are developed fairly early in life, this
is not necessarily discount the possibility that these qualities may be developed among
adults, especially young adults like you –if they so decide to want it.

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SELF-ASSESSMENT QUESTIONS
1. What Filipino values do you think you possess, positive or deterrent in becoming
entrepreneur.
2. Why do you think is it important to understand the culture and environment that we
have in assessing our entrepreneurial activity?

References:
Asor, W. (2009). Entrepreneurship in the Philippine setting. Manila: REX Bookstore, Inc.

Serdef, (1998). Introduction to entrepreneurship. Manila : Small Enterprises Research and

Development Foundation, Inc.

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 Chapter 5 Personal Entrepreneurial
Competencies
At the end of this chapter, you can:
 Identify important characteristics or entrepreneurial competencies
which you have to develop or strengthen
 Enumerate guidelines that are important in entrepreneurship
 Identify the tools and behavior associated with successful
entrepreneurship

Lesson 1 Developing yourself for entrepreneurship

Here are some ways to start developing an entrepreneurial attitude and conditioning
yourself for entrepreneurship:

1. Strengthening the Mind: Entrepreneurs are constantly looking to grow and become
better individuals. They know the value of developing a healthy mind with good thought
patterns. You need to know how to feed your mind and enable it to grow by reading great
books, attending business seminars, watching videos that can inspire you and educate
you about this amazing global startup ecosystem that we are living in. It's a great time to
start-up and be your own boss.

Exploring the entrepreneurial endeavors of people from around the world can be quite
inspiring to fire up the entrepreneur inside you.

Your mind has to be renewed each day - you cannot afford to think like the 95% of the
World. To condition yourself for true Entrepreneurship you have to get around successful
people and find out what they are feeding their minds with.

All actions flow from our thoughts and therefore for an Entrepreneur to develop an
appetite for strategic and bold action they have to strengthen their mind and develop a
capacity for knowledge that has the power to start and grow a successful business.

2) Obsessive Dreaming: By constantly dreaming about your business and envisioning

what your business could look like even before starting one you can position yourself to
actually start it! People who dream big have a unique combination of brain chemistry that
allows them to dream unrealistically combined with an ability to take a risk along with the
different action steps needed to achieve their dream. If you lack the ability to dream big
and yet find yourself wanting to pursue Entrepreneurship, ask yourself why you really want
to do it.

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Entrepreneurship almost demands unrealistic dreaming. Many people around you may
call you foolish but I think you should tell them what Steve Jobs said, "Those people who
are foolish enough to think that they can change the World are the ones that actually do".
Develop a sense and an attitude of dreaming big for your business idea so that your
internal wiring knows you're in for the long-term in order to achieve this dream.

Now dreaming big does not only include the fancy estate or the yacht. No, it includes
dreaming big for your employees and their families, it includes dreaming about your
customers and how your products and services are going to change their lives. This is real
impact. It is imperative that you develop an "others" mentality to condition yourself. What
this means is seeking out the interests of your clients, investors and employees above
your own.

3) Internal Governance: What this means is knowing how to govern your internal
discussions. Before you make any kind of decision the final person you consult with is
yourself! We are always having internal discussions before doing anything and often times
we need to understand the way we internalize these discussions and figure out how we
can have the best level of internal governance before making any kind of decision to
speak or act. I think prayer and meditation is an excellent tool to help you develop a
healthy pattern of thought. Prayer and meditation allows you to calm yourself and brings
you to a place of wisdom and understanding which is invaluable for decision makers.

If you see yourself having toxic internal conversations which are negative and unhealthy
it's probably time to go through a spiritual detox and re-wire your internal thinking
processes for better decision-making.

An entrepreneur is an optimist. Period. Optimism is an essential element to condition

yourself for great success. An entrepreneur cannot have any tolerance for negativity or
passive thinking.

Must-Dos Before Becoming an Entrepreneur

Not everyone is cut out to be a successful business owner.

It requires a ton of time and effort, and many times -- investing your own capital. Sure, the
idea of being your own boss is appealing, but how do you know whether entrepreneurship
is for you? How do you get there? What if you fail?

Think about the reasons you want to become an entrepreneur. For many of us, it’s a
combination of being able to be more creative, make a difference, work for ourselves,
have flexible hours and increase our earning potential. To do these things, you must learn
to put yourself in the right mindset -- otherwise, you’ll spend most of your time struggling
to keep your head above water.

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If you’re considering entrepreneurship, you should also consider doing these five things --
right now.

1. Educate yourself about finances

A class in personal finance should really be mandatory for high school and college
curriculums. It’s something we’ll have to do for the rest of our lives, but when it comes to
personal income, we're essentially thrown into the lion's den. Is there any wonder so many
of us are drowning in debt?

Make sure you read up on managing your finances. It will make your creative life as an
entrepreneur easier to navigate and more rewarding. A good place to get started is by
checking out [Link], which provides free videos, tools and resources to help
you learn more.
Also, find a mentor. This is something helps tremendously when it comes to accelerating
your learning curve at a much quicker pace. You can access the Go-Negosyo Mentorship
online by visiting their official webpage Go [Link]

2. Get out of that employee mentality

Most people head out into the real world with one goal: to get a job. It’s been hammered
into our minds almost from birth.

But if you're an entrepreneur, you're looking to be an employer, not an employee. It's vital
for you to set yourself apart from the “employee” mindset: You're not just a worker toiling
away for someone else's benefit. You’re the one steering this ship.

How do you do this? First, identify your gift or skill. Everyone has one, but sadly, many
aren't able to recognize it quickly. Seek opinions of others you trust. Ask them what you do
naturally better than others. Once you understand what your gift is, then develop a
business around it that achieves a specific need in society.

3. Learn how to take risks

Having a regular job gives people a sense of security. Many will stay in their secure hub
for fear of losing it all, but every successful person has had to take a risk at some point
during their professional lifetime -- probably more than once.

If you hope to come out on top, you need to not only face risks head on but actively
embrace them. Sometimes it pays off, sometimes it doesn't. But comfortable security
doesn’t often pay high dividends. To succeed, you have to take the leap and choose to fly.
And you can only learn this lesson by doing it.

4. We have technology. Use it to learn!

Not all successful entrepreneurs went to college -- or graduated from high school for that
matter. In our technologically-obsessed culture, there's no excuse for not being informed --
absolutely crucial to your success that you know your industry inside and out. With the

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push of a few buttons on our phones and tablets, we can educate ourselves on nearly any
topic, but it's up to you to use that power to your advantage.

When it comes to technology, it's all about learning a new skill set. Whether it's learning
how to use Wordpress (a blogging platform) or understanding how to market your
business on Facebook, it's important that you're always learning about the new technology
of today.

If you don't, your competition will leave you in the dust.

5. Don't let technology make you lazy

Draw a fine line between using the Internet for information and letting it make you lazy.
While having the Internet in the palm of your hand gives you access to a barrage of
information, news, discussions and ideas, it can be too easy to let it be a distraction.

In order to avoid distractions, get out the old-school whiteboard and write a daily or weekly
to-do list. Once you finish a task, remove it from the board and start working on the next
one. The goal by the end of the day or week should be completing all of your task. This
vastly improves efficiency.

Remember: You aren't in a box -- you're building it, and the basics of building are a solid
blueprint, lots of planning and hard work. Only then can you step back and admire what
you’ve created.

SUMMARY
This chapter gave you an insight of the competencies of becoming an entrepreneur. We
were able to identify the various personal competencies of an entrepreneur and assess
the areas wherein they can grow to be better prepared as entrepreneur.

Reflect upon:
1. Do you think you have the characteristics of becoming an entrepreneur?
2. How do you plan to develop yourself into an entrepreneurial one.

Be sure to answer and engage in the E-discussion.

References:
[Link]

Asor, W. (2009). Entrepreneurship in the Philippine setting. Manila: REX Bookstore, Inc.
Page 30 of 66
Serdef, (1998). Introduction to entrepreneurship. Manila : Small Enterprises Research and
Development Foundation, Inc.

Chapter 6 Basic Skills of an Entrepreneur:

Ideation, Creativity and Innovation
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 At the end of this module, you can:
 Demonstrate the skills of ideation, creativity, and innovation
 List profitable business ideas
 Enumerate, define and describe your personal dreams leading to profitable
business ideas.

Watch the video lecture in the USB file name: Creativity

Lesson 1 Ideation
The beginning of a business endeavor is ideation. This should be the first
investment who seeks to be an entrepreneur; and to be called an entrepreneurial business
opportunity, such idea has to be new, or if not, should be innovative.
It is always nice to start with a good idea, one that is worth exploring or converting
into a business option. Steve Jobs had that great idea of putting together the television
and typewriter which gave birth to Apple Inc.,

Where to get idea?

The best source of ideas worth pursuing into a business is the consumers or the
market in general, because they are the one who needs the product or service.
Creativity is innate to those who are creative, but for some who are deprived of
creative thinking, they can try to get ideas from reading books or talking to someone
who is creative. Suggested sources of ideas also includes trade journals, trade
associations, conventions, exhibits, trade shows, and consumer shows, country or
government affairs, product catalogs, consumer magazines, “opportunity” magazines,
government publications, directories, old advertisements, import/export bulletins,
current events and announcements, trends and fashion, club/society
meetings/functions, social encounters, pedestrians observation.

Options for sourcing business ideas:

Suggested by A.W. Hiam & K.W. Olander in their book “The Entrepreneur’s Complete
Source Book”
1. Draw from personal interest or hobbies.
-many businesses started out by owners just doing what they like, and because this
gives happiness to the entrepreneur they do it because of money as their top reason,
but because this is their passion.
2. Look around for limitations in existing products or services.
-there are so many kinds of mobile phones already but there is always something to
look forward to this, month after month, there are new kinds introduced to the market,
better than the last. So think of it, you might be the next entrepreneur who could
develop new infusion of Benguet coffee, you could be the next chef of an innovative
kiniing dish. Don’t put limitations to what you see, there will always new things you can
develop out of a product.
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3. Make a wish list.
-writing down your wish list will give you an insight that there is something that you’d
still want to have.
4. Think of new and different ways to use existing products. There are many products
which we can use in other use aside from its major purpose. For example, a baking
soda is purposely created for baking but did you know that this can also be used as
cleaning agent, as teeth whitener, as deodorant, as ointment, and used as medication
as well.
5. Take a close look at the social scene and how it is changing. What’s new today? Using
of facemask and face shield is now a must, in the future what can you see that will be
largely used?
6. Consider technological advances and how they affect currently available products.
Online selling is the new normal of selling products, take advantage of the use of
technology since you can use even your mobile phones to sell your products.
7. Think of possible spin-offs from existing products or services that might be developed.
Work your creativity, explore, and don’t limit your imagination. There might be
something you can add to existing products to make it better.
8. Look at currently established business. Take a look in your environment. What
business are still open and can stand the trials of this pandemic?
9. Consider the features of particular products. Quality over quantity, or the other way
around?

Ideas that are worth a business should be the one that has a market now and in the
future. This could be a product, a service system, and the like, which could fall in any of
the following categories:
a) Need/want driven
b) Time-savings driven
c) Money-savings
d) Unique or incorporating a strong competitive advantage
e) Linked to personal interest, preferably passion
f) Linked to personal talent, ability, or specialized knowledge
g) Can improve one’s earning/income potentials
h) Contribute to solving socio-economic problem
i) Can satisfy basic and extreme needs of man

The more idea a person produces, the more original and the better quality ideas one
will find among them. When you come across an idea, you should put it in writing.
The most common way of developing ideas is as follows:
1. Recognize the need. Develop an idea or a product that can satisfy a need, and
respond to the need by establishing a business concern.
2. Improve existing product. The result of consumer dissatisfaction to the existing
product could open the door to introduce innovations or improvements.
3. Recognize trends. Entrepreneurs should be able to recognize the opportunity to
develop a product and set trends that can make them leading entrepreneurs.

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4. Be aware of everything. There is no other way to know about what is happening
around you, but to research and read.
5. Question and assumptions. Anybody can question the relevance of any product or
services, provided, that there is an effort to improve the product.
6. Name it first, then, develop it. If you have the idea, study it an develop it to something
that is worth a business.

Evaluating an Idea
Earlier, it is said that ideation is the beginning of a business. A wrong choice of idea
could be the cause of business failure, so ideas needs to be evaluated it can be profit
potential.
Kimberly Stansell suggests the following tips on evaluating ideas to make business out of
it.
1. Don’t let your ideas follow money-let money follow your ideas. If the idea is clear and
viable, there should be clear for the options for the business out of the idea.
2. See yourself as a problem solver. Ideas should be a solution to an existing problem of
the consumer or the market in general.
3. Use research as a weapon against failure. This is important fat in decision-making
process; most business failed because of lack of information.
4. Make sure your idea has longevity. An idea that is worth pursuing into a business is
one which has a long-term purpose and not only a fad.
5. Take a risk on your own ideas. Venture into a business by using your own ideas.
6. Test your idea against the past, present, and future. The market needs and demands
will not be far from what is happening in the past, so it is better to get information
about the past, present, and future.
7. Know the idiosyncrasies of your market. Know the needs of your market and all the
factors that affect the buying process. Your idea will depend on this.

Protecting your Idea

Once you generate an idea, it has to be protected because it can make you a potential
millionaire, like in the case of Bill Gates. There are many ways of protecting your idea
from being stolen or claimed by others, and losing the opportunity to be known as the
creator and the originator of the ideas. Aside from this, no company will pay you a royalty
if the idea presented is not legally protected. The following are the ways of protecting
your ideas:

1. Confidentiality agreement – an agreement which specifically provides that a signer

(e.g., investor, business partner, manufacturer, etc.) will not share the idea to anyone.
Sample:

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2. Patents- theses gives the inventor exclusive legal rights to exclude anyone else from
manufacturing, selling, importing, or using an invention during the life of the patent.
Classifications:
a. Design patent – protects the way something looks as opposed to the way it
operates

Coca cola deign patent

b. Utility patent – protects the actual mechanical, chemical, computer or process

design of an invention

Utility patent of an Apple phone

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 c. Plant patent – covers protection on new strains of plants created by
engineered, asexual production.

Plant patent of avocado by R.G. Hass

[Link]- a word, name, symbol, or device (or any combination of these) used by the
manufacturers or merchants to identify their goods and distinguish them those made or
sold by others.

3. Copyright – protects the creative work of composers, authors/writers, artists, film

makers, and others; endures during the lifetime of the creator and for 50 years his or her
death.

Other means of protecting an idea

1. Written on a diary, notes, etc. – keep notes in a safe place
2. Contacted a company, individual or any parties by telephone to discuss the idea- make
a copy of phone bills with notes on the call and what was discussed.
3. Send samples of the product or paper work or diskette files describing the idea or
product through the mail or courier service – use certified or credible companies or
any other legal means.

Lesson 2 Creativity
“Creativity is the starting point of a process which, when skillfully managed brings and
idea into innovation”- Lampikoksi and Emden

Entrepreneurial creativity
This is the implementation of novel, useful ideas to establish a new business or new
program to deliver products or services. The primary novel, useful ideas may have to do
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with (a) the products or services themselves, (b) identifying a market for the product or
services, (c) ways of producing and delivering the product or services, or (d) ways of
obtaining resources to produce or deliver the products or services.

Characteristics of Creative People

1. Bright but not necessarily brilliant. Creativity is not directly related to extraordinarily
high intelligence.
2. Good at generating a high degree of different ideas in a short period of time.
3. Have a positive image of themselves. They like who they are and they are self-
confident.
4. Sensitive to the world around them and the feelings of other.
5. Motivated by challenging problems.
6. Able to withhold the decision on a problem until sufficient facts have been
collected.
7. Value their independence and do not have strong needs from group approval.
8. Lead a rich, almost bizarre, fantasy life.
9. Flexible as opposed to rigid or dogmatic.
10. More concerned with the meanings or implications of a problem than with mall
details.
Environmental Stimulants to Creativity
a) Freedom: freedom in deciding what to do or how to accomplish
b) Good project management: a manager serves as a good role model, is
enthusiastic, has good communication skills, protects the project team from
outside distractions and interference, matches tasks to worker’s skills and
interests, and sets clear direction without managing too tightly.
c) Sufficient resources: access to necessary resources, including facilities,
equipment, information, funds and people.
d) Encouragement: management enthusiasm for new ideas, creating an atmosphere
free of threatening evaluation.
e) Various organizational characteristics: a mechanism for considering new ideas, a
corporate climate marked by cooperation and collaboration across levels and
divisions, an atmosphere where innovation is prized and failure is not fatal.
f) Recognition: a general sense that creative work will receive appropriate feedback,
recognition and reward.
g) Sufficient time: time to think creatively about the problem to explore different
perspectives rather than having to impose an already-determined approach
h) Challenge: a sense of challenge arising from intriguing nature of the problem itself
or its importance to the organization
i) Pressure: a sense of urgency that is internally generated from competition as a
personal sense of challenge.
j) Outside organization: form a general desire to accomplish something important

Environmental Obstacles to Creativity

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 1. Various organizational characteristics : inappropriate reward system in
organization; excessive red tape; a corporate climate marked by a lack of
cooperation across divisions and levels ; little regard for innovation in general.
2. Constraint: lack of freedom in deciding what to do or how to accomplish the task; a
lack of sense of control over one’s own work and ideas.
3. Organizational disinterest: a lack of organizational support, interest, or faith in a
project; a perceived apathy toward any accomplishments coming from the project.
4. Poor project management: a manager who is unable to set clear directions, who
has poor technical or communication skills, who controls tightly, or who allows
distraction and fragmentation of the team’s efforts.
5. Evaluation: inappropriate or inequitable evaluation and feedback systems;
unrealistic expectations; an environment focused on criticism and external
evaluation.
6. Insufficient resources: a lack of appropriate facilities, equipment, materials, funds,
people
7. Time pressure: insufficient time to think creatively about the problem; high
frequency of “fire-fighting”
8. Overemphasis on status quo: reluctance of managers or co-workers to change their
way of doing things; an unwillingness to take risks
9. Competition: interpersonal or intergroup competition within the organizational
fostering a self-defensive attitude.

Lesson 3 Innovation

“Innovation is the specific function of

entrepreneurship…it is the means by which the
entrepreneur either creates new wealth-producing
resources or endows existing resources with
enhance potential for creating wealth”- Peter Drucker

Innovation is doing something different. It could be

introducing either something new or different. Innovativeness is a characteristic of an
individual, team, or organization. This is also the capacity to create ideas and develop
them to usable products or services.

Impacts of Innovation
Efforts on innovation must have impacts- positive impacts. It must have a positive
implication that is supportive of organizational goals and objectives. The innovative
accomplishment exists if the following happens:
1. Effecting a new policy – creating change or orientation or direction.
2. Finding new opportunities – developing an entirely new product or opening a new
market.
3. Designing a new structure – changing the formal structure, reorganizing or introducing a
new structure.

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4. Devising a fresh method – introducing a new process, procedure, or technology for
continued use.
Types of Innovation
1. Invention – the creation of a new product, service, or process, one that is often
novel or untried.
2. Extension – the expansion of a product, service, or process that is already in
existence.
3. Duplication – the replication of an already existing product, service, or process
4. Synthesis – the combination of existing concepts and factors into a new
formulation.
Types of innovators
1. Gatekeeper
 Collects and channels information about changes in the technical environment.
 Stays current with events and ideas through personal contacts, professional
meetings, and the news media.
2. Idea generator
 Analyzes information about new technologies, products, or procedures in order to
yield a new idea for the company.
3. Champion
 Advocates and pushes for the new idea
 Obtains and applies the resources and staff to demonstrate the feasibility of the
idea
4. Project Manager
 Draws up schedules and budgets; arranges periodic information sessions and
status reports; coordinates labor, equipment, and other resources; and monitors
progress against the plan
5. Integrates and administers the tasks, people, and physical resources necessary to
move on idea into practice Coach
 Addresses the technical and interpersonal aspects of the work in the innovation
process
 Provides technical training related to new developments and helps people work
together to turn an idea into a tangible result
Sources of Innovation
1. Unexpected occurrences
2. Incongruities
3. Process needs
4. Industry and market changes
5. Demographic changes
6. Changes in perception
7. Knowledge-based concepts
Myths of innovation
1. Innovation is planned and predictable
2. Technical specifications should be thoroughly prepared
3. Creativity relies on dreams and blue-sky ideas

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4. Big projects will develop better innovations
5. Technology is the driving force of innovation and success

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Principles of Innovation
1. Be action-oriented
2. Make the product, process, or service simple and understandable
3. Make the product, process, or service customer-based
4. Start small
5. Aim high
6. Try-test-revise
7. Learn from failures
8. Follow a milestone schedule
9. Reward heroic activity
10. Work, work, work

Summary
Creativity, innovation and entrepreneurs are inseparable. Creativity is an essential part
of innovativeness, the starting point of a process, which is skillfully managed, and brings
idea into innovation. It is considered as a characteristic that is innate or inherent to every
individual, but the social environment can influence both the level and frequency of
creative behavior. It is particularly important to understand the role the environment can
play.

Test and apply your knowledge

A. 1. Where and how do you generate ideas worth pursuing into a business?
2. What is the best way to evaluate business opportunities?
3. What is an idea that is worth a business?
4. Describe the stimulants to creativity.
B. Name that!

Note: Send your answers in our Facebook GC.

Be sure to answer and submit Assignment 4 before preceding to the next chapter.

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References:
[Link]

Serdef, (1998). Introduction to entrepreneurship. Manila : Small Enterprises Research and

Development Foundation, Inc.

Azarcon, E., Areola, A., Arguelles, R., Barlis, M., Dela Peña, G., Drequito, G., et al.
(2008). Entrepreneurship principles and practices: a modular approach(2nd ed.). Baguio
City: Valencia

Chapter 7 Entrepreneurial Option

At the end of this chapter, you should be able to:

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  Discuss the reasons why people go to business
 Distinguish the difference of a family business, a franchise and creating a
new one
 Choose the best route for you to enter entrepreneurship

Lesson 1 Reasons why people go into business.

There are many cool reasons why people should get into business. Most people get into
business just to secure some extra income to take care of their many needs. Some even
do so just to raise some money and handle a one-time problem. These are no doubt
reasons why they do business like a part time thing. Such businesses hardly amount to
anything big.

But there is more to gain in starting up your own business. I present to you the following
reasons;

1. To Increase Your Income

This is obviously the main reason why most people get into one form of business or the
other. If you set up a viable business, you are likely to move from a six-digit monthly
income to even an eight-digit income in less than no time.

These days there are few jobs that can pay a person enough money to take care of the
needs of a family. A sure way to get a comfortable life and earn serious income is to get
into your own business. Hardly will you find a very rich person who is depending fully on a
job.

If you are unsatisfied with the income you make every month, you need to seriously
consider starting up a business. You will soon have more than enough money resting in
your bank account.
2. To Have An Additional Job

It is very difficult to handle two jobs at the same time. But having a formal job and
doing a business is not too difficult. In fact today, many people do both. They set up a
business, employ one or two persons to work for them and then still carry on with their
formal job. Such an opportunity only comes when you set up your own business where
you make the decisions.

As you grow in life, you will soon see that your job is unable to fund the projects of your
life. When this happens, starting up a business of your own is the best option you have.

3. To Be Your Own Boss

Not many people love to be bossed and controlled around. People love to do things out of
their discretion. Sometimes when I see an old man in his 60s and 70s, answering “Sir” and
being ordered around by a young man in his 20s – 40s who happens to be his boss, I
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can’t help but pity the situation. This happens only to people who are solely dependent on
their jobs for survival.

When you set up your own business, you have no one to answer to but you. You can
make decisions freely and choose what to do at every point in time, without anyone asking
you questions. You are the boss and everyone respects you for that.

4. To Get Freedom

Man naturally loves some degree of freedom. Because you don’t have chains on your
hands, doesn’t mean you are free. As long as you have to strive daily to be at work in
order to secure an income, you are not free. Even if you are heading the organization you
work for, you are not free as long as you can only earn an income if you go to work.

A free person is one who can decide where to be and what to do at any point in time,
without being answerable to anyone else, not even to a salary. I am sure you will love
such a life. Starting your own business will allow you have full control over your life and
you could spend every day of your life traveling all over the world, getting recognition,
reaching out to needy people, making your impact felt and enjoying all the good things
money can offer, while others work for you.

5. To Gain Job Security

Before now, most people thought that in order to secure a wonderful future, you ought to
study, get a good degree, pick up a lucrative job and earn a huge package. Now, with the
high rate of job insecurity, getting a job has become the most insecure way to earn an
income. This is worst in the private sector.

I was talking lately with a friend who works with a private mining company and she told me
that the industry is a very lucrative one with well-paid jobs but the most insecure place to
be. She said when you work in her company, at the end of each month you pray hard not
to receive a letter saying that you have been laid off. It is that bad.

Owning your own business offers you a very high level of job security when well
established. The decisions to quit or stay both lie in your hands and no one else’s. No day
will you wake in the morning to receive a sack letter.

6. To Enjoy Life By Doing What You Love

Starting up your own business offers you the rare opportunity to do what you love and
create your own unique impression in the world. When you do what you love, you earn
money for doing nothing. Writing is something I love to do. I am very relaxed when I write.
If I build a business that is centered on writing and publishing, life is more likely to be fun
for me.

7. To Meet A Need In The Market

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Every good business identifies a need in the market and seeks to meet it. Needs abound
everywhere around us. There will never be a time when all the needs we have would have
been met. Starting up your own business begins from discovering a gap (or need) and
seeking to fill it up. It is always so wonderful when someone comes up with something that
addresses the problems of people and succeeds. The feeling is an out-of-this-world
feeling.

The only way to meet a clear need in the market is to step out of the comfort zone of a job
and go through the odds just to fill an existing gab. You can only do this by starting up
your own business.

8. To Develop Your Own Creative Skills

Starting your own business is one big way of putting your creativity to work and thus
developing it. When you know that your life depends on how much you make use of you
knowledge, talents, skills, experience, etc, you cannot go to sleep. You are always
thinking and trying to come up with something that will keep your business going forward.
This will make you even more creative.

Most jobs are built around some form of routine and only help to kill the creativity in most
people. This is why a true entrepreneur is hardly able to keep a job.

9. To Have Influence

Did you know that the business people of every nation have one of the greatest influence
on who is who in the leadership of that nation? They appear not to be interested but many
of them have a greater influence on the political climate of the nation than the ballot box.
They sponsor candidates during elections, sponsor bills in parliament, influence
presidential appointments, and so on. They have an indirect influence over your life and
what becomes of you.

When you grow your business to a height that you no longer make money for yourself
alone but your money starts affecting people’s lives, you have started having influence.
Such money can easily be guaranteed by building a business of your own.

10. To Enjoy Recognition

One of the most accomplished business men in my country that I know of, did not go to
school to beyond the primary level. He cannot even speak English properly. However,
wherever he goes, people respect him. No one cares if he is educated or not. He is more
recognized than many professors and accomplished career men in the country.

His businesses are all over the country and through them he has put food on many tables
by offering numerous job opportunities for people. He travels abroad very frequently and
whenever decisions are made that concern any sector where he has invested, he is

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consulted and his opinion is sought after. He has vocal power; He has a voice all because
he went into business.
You will hardly be able to gain some great level of recognition if all you do is leave the
house daily to an office and back. At most, it will be in your organization and if it goes
beyond that, it will be short-lived.

Lesson 2 Routes to entrepreneurship

Family Business
A business actively owned and/or managed by more than one member of the same
family. If you own a family business, you probably worry even more than the average
entrepreneur about ensuring that your company not only survives, but also thrives to
nurture the next generation. Several years ago, researchers David Sirmon and Michael
Hitt examined the strategies behind successful family businesses. They found that
success is tied directly to how well a company manages the five unique resources every
family business possesses:
1. Human capital. The first resource is the family's human capital, or "inner circle." When
the skill sets of different family members are coordinated as a complementary cache of
knowledge, with a clear division of labor, the likelihood of success improves significantly.
2. Social capital. The family members bring valuable social capital to the business in the
form of networking and other external relationships that complement the insiders' skill
sets.
3. Patient financial capital. The family firm typically has patient financial capital in the
form of both equity and debt financing from family members. The family relationship
between the investors and the managers reduces the threat of liquidation.
4. Survivability capital. The family company must manage its survivability capital-family
members' willingness to provide free labor or emergency loans so the venture doesn't fail.
5. Lower costs of governance. The family business must manage its ability to hold down
the costs of governance. In nonfamily firms, these include costs for things such as special
accounting systems, security systems, policy manuals, legal documents and other
mechanisms to reduce theft and monitor employees' work habits. The family firm can
minimize or eliminate these costs because employees and managers are related and trust
each other. If you own a family business, you probably worry even more than the average
entrepreneur about ensuring that your company not only survives, but also thrives to
nurture the next generation. Several years ago, researchers David Sirmon and Michael
Hitt examined the strategies behind successful family businesses. They found that
success is tied directly to how well a company manages the five unique resources every
family business possesses:

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1. Human capital. The first resource is the family's human capital, or "inner circle." When
the skill sets of different family members are coordinated as a complementary cache of
knowledge, with a clear division of labor, the likelihood of success improves significantly.

2. Social capital. The family members bring valuable social capital to the business in the
form of networking and other external relationships that complement the insiders' skill
sets.

3. Patient financial capital. The family firm typically has patient financial capital in the
form of both equity and debt financing from family members. The family relationship
between the investors and the managers reduces the threat of liquidation.

4. Survivability capital. The family company must manage its survivability capital-family
members' willingness to provide free labor or emergency loans so the venture doesn't fail.

5. Lower costs of governance. The family business must manage its ability to hold down
the costs of governance. In nonfamily firms, these include costs for things such as special
accounting systems, security systems, policy manuals, legal documents and other
mechanisms to reduce theft and monitor employees' work habits. The family firm can
minimize or eliminate these costs because employees and managers are related and trust
each other.

Clearly delineating these unique family resources and leveraging them into a well-
coordinated management strategy greatly improves your business's chances of success
compared to nonfamily-owned companies.

5 Keys to Successfully Leading a Family Business

Family businesses aren't always easy, but they are most definitely be worth it.
1. Recognize the advantages of family ownership.
One of the most attractive benefits in a family-owned business is fast, agile, nimble
decision making. The era of digital transformation is here. Quicker decisions must be
made whether it’s leveraging data, closing the gap with customers, or something else. It is
more than a trend; there’s plenty of research to support an action-oriented business
model. In a review of traits linked to organizational health, McKinsey researchers found
that businesses scoring high for agility also ranked within the top quartile of overall
business health. For their purposes, agile companies were those who could successfully
combine speed and stability without sacrificing quality. The Harvard Business Review also
reported that decision-making windows are shrinking, and managers must continually
produce results in less time.
Speed: In family-owned businesses, decisions are often made immediately – without
lengthy approvals or formal votes. The speed of change either moves companies forward
or holds them back.

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Stability: Many companies struggle with balancing current gains against business
longevity. In a family business, stability is not in question when words like legacy and
heritage are used daily. It simplifies decision making by establishing a preferred approach.
Commitment: With a family business, there is a greater sense of commitment and
accountability. Younger generations are expected to buckle down and grow what they’ve
inherited. Unlike some resumés that are built by strategically jumping from one career to
the next, those involved with a family business must find a way to make things work.
Vision: Nothing is as gratifying as everyone being on the same page and pulling in the
same direction. A legacy of shared values and vision, coupled with long-term commitment,
is what transforms those involved in a family business to not simply look at their own
success, but to also become stewards for future generations.
2. Treat family members equally.
Seniority doesn’t win; skill and hard work does. Sometimes the big win will come from one
team member. Other times it will come from someone else. Don’t limit people’s ability to
make a positive impact simply because of age or time with the company.
3. Empower the next generation.
It is human nature to be resistant to change. It takes practice to be able to recognize
change and evaluate its opportunities and drawbacks. That means you have to allow
change while remembering your roots, your core values, and key business principles. If
you don’t let change in, progress will never happen.
4. Innovate
There is no overstating how necessary it has become for businesses to break away from
the clutter. That takes people who think creatively to offer a fresh perspective on new
ideas. Cultivate a business dynamic that welcomes innovation…and the people who
inspire it.
5. Business is business, family is family.
Conflict happens in business. You won’t always see eye-to-eye with everyone. That’s no
reason to ever make it personal (or take it personally for that matter). Whether it’s an
actual family member or a valued team member, don’t let business dealings -- no matter
how frustrating -- become a source of difficulty or resentment outside the business.

Family businesses aren’t always easy, but they are most definitely be worth it. Appreciate
the value each person brings to the table, encourage their contributions, and you’ll see a
business that has what it takes to be a leader.

Lesson 2 Buying an existing business

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 If you think you have the chops to be an entrepreneur, but would rather not start
with a new idea -- or just plain don’t have a new idea worth starting -- you may be a great
candidate to buy an existing business instead.

While buying an existing business typically involves more upfront cost, it also presents
less risk than starting from scratch. Financially, you’re looking at actual profit and loss
records rather than rough estimates, and there’s a clear history of sales to point to. You
may also acquire valuable patents or copyrights, or have the opportunity to drive a
stagnant business in an exciting direction with your expertise.

How to buy an existing business

Do you want to be the buyer that ushers an existing business into a new era of success?
Follow these steps to move forward.

1. Decide what you’re looking for.

Purchasing a business is a huge decision that will impact your life and livelihood for many
years. So before you even start investigating options, start by knowing exactly what kind
of business you’re looking for. Here are a few factors to consider:

• Location: Are you open to moving, or do you need something close to home? Or
maybe you’re looking at businesses not tied to a specific location. Either way, remember
that the location of your business will affect labor costs, taxes, and other financials that
can change the business’s bottom line.

• Size: Do you want to own a small family business, or a large, bustling enterprise?
Buying a larger business could mean bigger profits, but will likely also involve a higher
purchase price and more stress in the transition.

• Industry: What are the areas where you already have experience? What causes
are you passionate about, or what hobbies are you interested in?

• Lifestyle: Are you interested in a job involving lots of travel? Are you open to
working odd hours, or would you rather stick to a traditional nine-to-five? As the owner of a
business, the buck stops with you -- so think twice before choosing the kind of hands-on
business that might involve emergency phone calls at 3 a.m.

2. Research available businesses.

Once you know what you’re looking for, you’ll need to start researching businesses up for
sale. But wait! This isn’t the time to start Googling “businesses for sale.” Not yet, at least.

First put out some feelers close to home. Are your friends who launched a successful app
ready to move on to their next project? Do you work for a small business you love whose

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owners may be willing to sell? Or if you’re keeping it small and local, maybe the owners of
your favorite local coffee shop are ready to sell out and move to Bermuda?

If you know of a business you wish you owned, there’s no harm in asking.

From there, move outward to your business contacts, and carefully take to the internet for
your research. BizBuySell is a reputable marketplace for buying businesses online. But be
careful—for every legitimate opportunity to be found online, you’ll encounter dozens of
bad deals waiting to happen.

3. Consider working with a business broker.

If you’ve done some research on your own and haven’t found the business you’re looking
for, consider hiring a business broker to prescreen businesses for you, help you pinpoint
your areas of interest, and negotiate the terms of your eventual business purchase.

Business brokers work similarly to real estate agents in that they will typically charge you
a commission—around 5 to 10 percent of the purchase price—so they only get paid when
you buy a business. So while the assistance of a broker can offer may be worth the cost,
proceed with caution, and don’t let yourself get pushed into a hasty decision.

Related: How to Buy a Business With Seller Financing

4. Complete your due diligence.

When you find a business that’s a good match, a true entrepreneur will be immediately
itching to dive head-first into purchasing the business and moving it forward. Before you
get too excited, slow down and do your homework. A business that looks great at first
glance could have serious issues hiding underneath that would make it a poor choice for
sale.

Before you go any further, get your acquisitions team assembled. Especially if you’re not
working with a broker, you’ll need an acquisitions attorney and an independent business
valuations firm to help you determine the value and health of the business.

Have a business valuation performed to determine how much the business is worth, and
consider how the current owner’s connections and expertise may affect that value. In a
business-to-business company, for example, a business sale could cause the former
owner’s clients to leave, which would seriously impact the value of the business.

Have a professional accountant evaluate the business’s written financials very carefully to
make sure everything is on the up and up, and question anything that may be unclear.
When you buy a business, you take on a tremendous amount of liability for things that
may have happened before you were involved, so don’t leave anything up to chance.

5. Acquire the necessary funding.

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While there are many benefits to purchasing an existing business, it can certainly be an
expensive option. Unless you’re independently wealthy or have a financial backer, you’ll
likely need funding to make the sale.

Once you’ve settled on a purchase price for the business and know how much funding
you need, you have a few options for sources of financing:

• Seller financing: This is where the seller allows you to make payments over time to
purchase the business, usually for the purchase price plus interest. If your seller is open to
this option, it can be the best financial choice for all involved.

• Angel investors or venture capital: In this model, you would be partnering with
someone else to purchase the business -- they are the financial investor, and you are the
on-the-ground operator. If the business succeeds, this will cost you significantly in profits.
But if it fails, you won’t have to worry about paying debts on a business that isn’t making
money.

• Business loan: Alternatively, you could take out a term loan to purchase the
business through a traditional bank or an online alternative lender. The good news here is
that lenders are often more open to loans for purchasing existing businesses with a known
revenue history. Even so, your personal financials will play a big role in your ability to
qualify.

Each financing source comes with its own pros and cons, so do your research and talk to
an independent financial advisor to make sure the funding source you pursue is the best
choice for your bottom line.

6. Draft the sales agreement

You’ve chosen a business, negotiated the terms, and secured the funding to make a
purchase. All that is left to do is draft the agreement and sign on the dotted line. Again,
make sure you’re working with a reputable acquisitions attorney here, and that you fully
understand the written terms of the agreement before you sign.

Don’t leave any ambiguities that could cause trouble at closing or even after the sale has
gone through.

Choosing to buy an existing business is a valuable entrepreneurial feat that will impact
your life, your community and the lives of your employees for years. With the right
connection and a lot of hard work on the transition, you may be the perfect person to turn
a good business model into great future for all involved.

Lesson 3 Franchising
A continuing relationship in which a franchisor provides a licensed privilege to the
franchisee to do business and offers assistance in organizing, training, merchandising,
marketing and managing in return for a monetary consideration. Franchising is a form of

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business by which the owner (franchisor) of a product, service or method obtains
distribution through affiliated dealers (franchisees).

If buying an existing business doesn't sound right for you but starting from scratch sounds
a bit intimidating, you could be suited for franchise ownership. Just what is a franchise--
and how do you know if you're cut out to be a franchisee?

In addition to a well-known brand name, buying a franchise offers many other advantages
that aren't available to the entrepreneur starting a business from scratch. Perhaps the
most significant is that you get a proven system of operation and training in how to use it.
New franchisees can avoid a lot of the mistakes startup entrepreneurs typically make
because the franchisor has already perfected daily operations through trial and error.

Reputable franchisors conduct market research before selling a new outlet, so you'll feel
greater confidence that there's a demand for the product or service. The franchisor also
provides you a clear picture of the competition and how to differentiate yourself from them.
Finally, franchisees enjoy the benefit of strength in numbers. You'll gain from economics of
scale in buying materials, supplies and services, such as advertising, as well as in
negotiating for locations and lease terms. By comparison, independent operators have to
negotiate on their own, usually getting less favorable terms. Some suppliers won't deal
with new businesses or will reject your business because your account isn't big enough.

Once you've decided a franchise is the right route for you, how do you choose the right
one? With so many franchise systems to choose from, the options can be dizzying. Start
by investigating various industries that interest you to find those with growth potential.
Narrow the choices to a few industries you're most interested in, then analyze your
geographic area to see if there's a market for that type of business. If so, contact all the
franchise companies in those fields and ask them for information on their franchise
opportunity. Any reputable company will be happy to send you information at no cost.
Of course, you shouldn't rely solely on these promotional materials to make your decision.
You also need to do your own detective work. Start by visiting your library or going online
to look up all the magazine and newspaper articles you can find about the company you're
considering. Is the company depicted favorably? Does it seem to be well managed and
growing?
Once you've decided on a certain franchise through your preliminary research, you need
to find out if this opportunity is as good as it sounds. Your next step is to analyze it
thoroughly to determine whether it's really worth buying.
Much of the information you'll need to gather in order to analyze a franchise will be
acquired through the following:
• Interviews with the franchisor
• Interviews with existing franchisees
• Examination of the franchise's Uniform Franchise Offering Circular (UFOC)
• Examination of the franchise agreement
• Examination of the franchise's audited financial statements
• An earnings-claim statement or sample unit income (profit-and-loss) statement
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• Trade-area surveys
• List of current franchisees
• Newspaper or magazine articles about the franchise
• A list of the franchisor's current assets and liabilities
Through this research, you want to find out the following:
• If the franchisor--as well as the current franchisees--are profitable
• How well-organized the franchise is
• If it has national adaptability
• Whether it has good public acceptance
• What its unique selling proposition is
• How good the financial controls of the business are
• If the franchise is credible
• What kind of exposure the franchise has received and the public's reaction to it
• If the cash requirements are reasonable
• What the integrity and commitment of the franchisor are
• If the franchisor has a monitoring system
• Which goods are proprietary and must be purchased from the franchisor
• What the success ratio is in the industry
Don't be shy about asking for the required materials from the franchisor. After all, they'll be
checking you out just as completely. If they aren't, that should sound a warning bell.
Another warning sign is if the franchisor asks you to sign a disclaimer stating you haven't
relied on any representations not contained in the written agreement. Such a requirement
could indicate the franchisor doesn't want to be held responsible for claims made by its
sales representatives.

Lesson 4 Create a new business

Not every small business is positioned for success. In fact, only about two-thirds of
businesses with employees survive at least two years, and about half survive five years.
So you may be in for a real challenge when you decide to take the plunge, ditch your day
job, and become a business owner. The stage is often set in the beginning, so making
sure you follow all of the necessary steps when starting your business can set the
foundation for success.

Here are 10 steps that are required to start a business successfully. Take one step
at a time, and you'll be on your way to successful small business ownership.

Step 1: Do Your Research

Most likely you have already identified a business idea, so now it's time to balance it with a
little reality. Does your idea have the potential to succeed? You will need to run your
business idea through a validation process before you go any further.
In order for a small business to be successful, it must solve a problem, fulfill a need or
offer something the market wants.
There are a number of ways you can identify this need, including research, focus groups,
and even trial and error. As you explore the market, some of the questions you should
answer include:
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Is there a need for your anticipated products/services?
Who needs it?
Are there other companies offering similar products/services now?
What is the competition like?
How will your business fit into the market?
Don't forget to ask yourself some questions, too, about starting a business before you take
the plunge.
Step 2: Make a Plan
You need a plan in order to make your business idea a reality. A business plan is a
blueprint that will guide your business from the start-up phase through establishment and
eventually business growth, and it is a must-have for all new businesses.
The good news is that there are different types of business plans for different types of
businesses.
If you intend to seek financial support from an investor or financial institution, a traditional
business plan is a must. This type of business plan is generally long and thorough and
has a common set of sections that investors and banks look for when they are validating
your idea.
If you don't anticipate seeking financial support, a simple one-page business plan can give
you clarity about what you hope to achieve and how you plan to do it. In fact, you can
even create a working business plan on the back of a napkin, and improve it over time.
Some kind of plan in writing is always better than nothing.
Step 3: Plan Your Finances
Starting a small business doesn't have to require a lot of money, but it will involve some
initial investment as well as the ability to cover ongoing expenses before you are turning a
profit. Put together a spreadsheet that estimates the one-time startup costs for your
business (licenses and permits, equipment, legal fees, insurance, branding, market
research, inventory, trademarking, grand opening events, property leases, etc.), as well as
what you anticipate you will need to keep your business running for at least 12 months
(rent, utilities, marketing and advertising, production, supplies, travel expenses, employee
salaries, your own salary, etc.).
Those numbers combined is the initial investment you will need.
Now that you have a rough number in mind, there are a number of ways you can fund
your small business, including:
 Financing
 Small business loans
 Small business grants
 Angel investors
 Crowdfunding
You can also attempt to get your business off the ground by bootstrapping, using as little
capital as necessary to start your business. You may find that a combination of the paths
listed above work best. The goal here, though, is to work through the options and create a
plan for setting up the capital you need to get your business off the ground.
Step 4: Choose a Business Structure

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Your small business can be a sole proprietorship, a partnership, a limited liability company
(LLC) or a corporation. The business entity you choose will impact many factors from your
business name, to your liability, to how you file your taxes.
You may choose an initial business structure, and then reevaluate and change your
structure as your business grows and needs change.
Depending on the complexity of your business, it may be worth investing in a consultation
from an attorney or CPA to ensure you are making the right structure choice for your
business.
Step 5: Pick and Register Your Business Name
Your business name plays a role in almost every aspect of your business, so you want it
to be a good one. Make sure you think through all of the potential implications as you
explore your options and choose your business name.
Once you have chosen a name for your business, you will need to check if it's
trademarked or currently in use. Then, you will need to register it. A sole proprietor must
register their business name with either their state or county clerk. Corporations, LLCs, or
limited partnerships typically register their business name when the formation paperwork
is filed.
Don't forget to register your domain name once you have selected your business name.
Try these options if your ideal domain name is taken.
Step 6: Get Licenses and Permits
Paperwork is a part of the process when you start your own business.
There are a variety of small business licenses and permits that may apply to your
situation, depending on the type of business you are starting and where you are located.
You will need to research what licenses and permits apply to your business during the
start-up process.
Step 7: Choose Your Accounting System
Small businesses run most effectively when there are systems in place. One of the most
important systems for a small business is an accounting system.
Your accounting system is necessary in order to create and manage your budget, set your
rates and prices, conduct business with others, and file your taxes. You can set up your
accounting system yourself, or hire an accountant to take away some of the guesswork. If
you decide to get started on your own, make sure you consider these questions that are
vital when choosing accounting software.
Step 8: Set Up Your Business Location
Setting up your place of business is important for the operation of your business, whether
you will have a home office, a shared or private office space, or a retail location.
You will need to think about your location, equipment, and overall setup, and make sure
your business location works for the type of business you will be doing. You will also need
to consider if it makes more sense to buy or lease your commercial space.
Step 9: Get Your Team Ready
If you will be hiring employees, now is the time to start the process. Make sure you take
the time to outline the positions you need to fill, and the job responsibilities that are part of
each position. The Small Business Administration has an excellent guide to hiring your
first employee that is useful for new small business owners.

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If you are not hiring employees, but instead outsourcing work to independent contractors,
now is the time to work with an attorney to get your independent contractor agreement in
place and start your search.
Lastly, if you are a true solopreneur hitting the small business road alone, you may not
need employees or contractors, but you will still need your own support team. This team
can be comprised of a mentor, small business coach, or even your family, and serves as
your go-to resource for advice, motivation and reassurance when the road gets bumpy.
Step 10: Promote Your Small Business
Once your business is up and running, you need to start attracting clients and customers.
You'll want to start with the basics by writing a unique selling proposition (USP) and
creating a marketing plan. Then, explore as many small business marketing ideas as
possible so you can decide how to promote your business most effectively.

Once you have completed these business start-up activities, you will have all of the most
important bases covered. Keep in mind that success doesn't happen overnight. But use
the plan you've created to consistently work on your business, and you will increase your
chances of success.

Summary
This chapter discussed the routes to entrepreneurship. Family business is one of
the best course of business since it’s your family that you get to deal with. Buying an
existing business can be your option if you want an easy entry in the business.
Franchising will be a great option if you want everything to be synchronized since a
system will be provided by the company already. Creating a new business is yet to be one
of the most promising thing a person can achieve especially if they get to follow their
dream, passion and interest.

SELF-ASSESSMENT QUESTIONS. Share your answers in the google classroom.

1. What for you is the best route to entrepreneurship, why?
2. If you are to adopt franchising, what will be the best company that you can put up in
your locality.

Be sure to answer and submit Assignment 5 before preceding to the next chapter.

References:
[Link]

Serdef, (1998). Introduction to entrepreneurship. Manila : Small Enterprises Research and

Development Foundation, Inc.

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Azarcon, E., Areola, A., Arguelles, R., Barlis, M., Dela Peña, G., Drequito, G., et al.
(2008). Entrepreneurship principles and practices: a modular approach(2nd ed.). Baguio
City: Valencia

Chapter 8 Successful Entrepreneurs

At the end of this chapter, you should

 be able to describe what is needed of the individual to become a successful
entrepreneur.

According to Chinese philosopher Lao Tzu, “The journey of a thousand miles begins with
a single footstep.”

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All growth springs from the beginning. Major historical changes didn’t 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.

There are many successful Filipino entrepreneurs in our country. Among many reasons,
they became famous because of their big contributions to the growth of our economy.
These top Filipino entrepreneurs possess different characteristics which are essential to
becoming successful. Many of them have great stories for us to wonder. They can serve
as an inspiration for us Filipinos that someday we may become like them. Be inspired of
these stories from 10 of the most successful entrepreneurs in the Philippines.

At the end of this chapter, you will be able to determine the ONE quality that made them
succeed while others failed.

1. Henry Sy, Shoe Mart

SM is more than just a shopping mall. It is a beloved institution.

Many of my favorite memories happened in SM. From shopping,
watching blockbuster movies, date night, ice skating to food tripping,
SM has it all.

However, this gigantic chain of more than 44 large-scale shopping

centers in the Philippines and throughout Asia has very humble
beginnings.
Henry Sy came from an impoverished family in Jinjiang, a town near Xiamen, China. The
entire family left China in 1936 to help the family patriarch manage a thriving convenience
store in Manila.
Unfortunately for the family, their store was burned down during World War II. However,
business-minded Henry saw an opportunity selling used military combat boots and other
postwar goods from supportive American soldiers!

His success led to the opening of his first shoe store, the SM in Avenida, Manila. Henry
had problems finding shoe manufacturers who could design shoes according to what he
had in mind, but he persisted. He spoke to customers and built his own network of
suppliers and manufacturers.

That never-say-die attitude got Henry Sy to where he is now: one of the richest men in the
world and a world-class commercial center developer who provides opportunities to both
entrepreneurs and the working class! (Henry Sy Sr died last January 19, 2019 at the age
of 94 but his legacy continues to make waves in the business community through his
trusted allies as well as his children.)
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2. Tony Tan Caktiong, Jollibee

If you thought you only loved The Champ and Chicken Joy, then be
prepared to be inspired by the man behind the franchise.

Also coming from an immigrant family from China, Tony learned the
value of hard work and dedication from his father who worked as a
cook in a Buddhist temple. Tony’s father started a Chinese
restaurant in Manila with his savings so he can send him to college.

In 1975, Tony bought a Magnolia ice cream parlor. However, it was not generating enough
business. After talking with his customers and people within the neighborhood, Tony
decided to include sandwiches, fried chicken, and French fries in the menu. In time, the
restaurant found itself packed to overflowing capacity.

By 1978, Tony had opened six more restaurants, but the main item was no longer ice
cream. Tony then decided to adapt the McDonald’s concept and named his franchise after
his work ethic of being as “busy as a bee.”

Today Jollibee has grown to more than 2,500 stores in the Philippines plus locations in the
US, China, Saudi Arabia, Vietnam, Singapore, and Brunei.

3. John Gokongwei Jr., JG Holdings

John’s life story is a “rich-to-rags-to riches” story. John Jr. was born
in China to the scion of one of the wealthiest families in Cebu.

When the father died, so did the business and the family fortune was
soon gone. John Jr. supported his family by peddling items along the
streets of Cebu by bike. Soon, he was trading items by boat to
Lucena City and to Manila by truck. Eventually, he started importing
items from the US.

John Jr. soon realized that importing carried too much risk and low margins. Thus, in
1957, he borrowed Php 500,000 from China Bank and started a corn milling business
named Universal Corn Products.

By 1961, Universal started diversifying its products and launched several popular brands
such as Blend 45. Universal Corn Products was renamed Universal Robina Corporation.

Today, the Gokongwei family owns several successful and highly diversified businesses.
Among these are Robina Land Corporation and Cebu Pacific.
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4. Socorro C. Ramos, National Bookstore

The next time you buy your batch of new school supplies and
textbooks, do not forget to thank Ms. Socorro C. Ramos!

Her story is a stuff for telenovela, and frankly, I’m surprised the
networks and movie outfits have not caught on. How’s this for a plot
teaser?

Girl’s brother marries scion of a wealthy bookstore owner in Manila. The girl finds job as a
saleslady at 18, meets and falls in love with the son of the owner; thus, he is technically
her in-law! Their parents forbid the relationship and sends the girl back to the province.
However, their love is so strong, girl and boy stand up to the parents, get married, and
have twins.

The boy takes over a branch with the girl, and they renamed it in National Book Store.
However, a war breaks out, and the store is destroyed! They rebuild the store, but
everything is held under suspicion of being “questionable.” They relocate the store in
Avenida, but as the business picks up, a storm destroys their roof. Soon, they rebuild the
store, and every centavo is used to build a nine-story National Book Store.
The girl is Socorro and the boy is Jose. Today, National Bookstore has grown to over 100
stores. Despite digital technology, it continues to flourish!

5. Cecilio Kwok Pedro, Lamoiyan Corporation

Cecilio’s life is not a typical rags-to-riches story; instead, it embodies

the entrepreneurial spirit of overcoming seemingly insurmountable
odds.

Cecilio used to head Aluminum Container Inc., which produced the

aluminum toothpaste tubes for Procter and Gamble, Philippine
Refining Company (now Unilever), and Colgate-Palmolive. However,
environmental concerns led his clients to shift to plastic-laminated toothpaste tubes.
Aluminum Container Inc. failed and closed its shop in 1986.

He put up Lamoiyan Corporation and manufactured toothpaste that was priced 50% lower
than his competitors. These included the still-popular brands Hapee and Kutitap. Although
the foreign brands countered by lowering their brands by 20%, Cecilio responded by
introducing toothpaste targeted for children that featured the characters from Sesame
Street.

Cecilio’s brands have made it to other markets in Asia, such as China, Vietnam, and
Indonesia.

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Cecilio’s greatest accomplishment was not limited to manufacturing. He is also known for
his advocacy to help hearing-impaired people find employment in the country.

His programs include free housing for more than 30 deaf–mute staffs. To date, more than
180 hearing-impaired students have received college education through DEAF or Deaf
Evangelistic Alliance Foundation.

6. Mariano Que, Mercury Drugstores

Many of today’s entrepreneurs would learn the value of customer

experience and innovation through Mariano Que.

Like many of the entrepreneurs discussed so far, Mariano found

opportunities for entrepreneurship after World War 2. Mariano had
been working in a local drugstore when the war destroyed several
businesses in the city.
Mariano saw the need to supply sulfa drugs, which were used to treat bacterial infections.
He started to buy sulfa tablets and sold them at affordable prices. Soon, other people
followed and adapted Mariano’s strategy.

However, only Mariano sold high-quality sulfa tablets, which ensured him a steady
clientele. With his hard work and dedication to build up savings, he was able to put up his
first drug store in 1945, which he named Mercury Drug. The Roman god Mercury is known
for speed. He also carries the caduceus, which is a symbol in the medical industry.

Mariano invested his earnings into the company and introduced many innovations in the
service. Among these innovations were a drug-delivery service to clients and locations
that are open 24/7 because he knew people would be needing medicines any time of the
day.

By the time Mariano opened his second Mercury Drug at the newly constructed Ayala
shopping center in Makati, he had invested in technological innovations, such as biological
refrigerators and computer-guided controls.

Mariano’s dedication to his business has allowed Mercury Drug into 700 stores and a
widely recognized name for quality pharmaceuticals.

7. Alfredo M. Yao, Zest-O

The next time you pass a vendor peddling goods on the street, keep
in mind that he or she can be supporting the next Alfredo M. Yao.

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When Alfredo lost his dad at age 12, his mother was left to support him and his siblings by
becoming a sidewalk vendor. A relative was able to give financial aid, which allowed
Alfredo to reach, but not complete, college at the Mapúa Institute of Technology.

Alfredo took several odd jobs, which included time at a printing press. During his stay
there, Alfredo learned how to print cellophane wrappers for candies and biscuits. His
experience prompted him to start his own printing business.

His printing business was doing well. However, his discovery of the Doy Packaging
system from Europe was the turning point of his entrepreneurial career. He tried to sell the
system to juice manufacturers, but no one was interested. Thus, Alfredo ventured into the
juice business by concocting flavors in his kitchen.
These juices were not only delicious but also appealing to parents as they found the light
and brightly colored packs easy to include in their children’s lunch boxes. Best of all, the
packaging allowed the juice to stay chilled longer. Zest-O was born!

Today, Zest-O controls 80% of the juice market, and it has expanded to markets in
Australia, China, New Zealand, Korea, Singapore, US, and several countries in Europe.
Alfredo’s entrepreneurial success has revitalized the juice region in the Philippines
particularly farmers growing dalandan. The Doy packs are also recycled by local cottage
industries into handbags for export to other countries!

The boy who once faced the harsh realities of life now become a successful juice
manufacturer. Alfredo has diversified his business interests into airlines by acquiring Asian
Spirit Airlines and renaming it as Zest Air.

8. Corazon D. Ong, CDO Foodsphere

Corazon represented the value of having passion in what you do as

a motivating factor in finding success as an entrepreneur.

Corazon was a dietitian by profession. She used her knowledge to

create processed meats that were affordable enough to compete
with the popular foreign brands. She developed corned beef,
hamburger patties, meat loaf, and hotdogs, which were sold purely
as a home business.

By 1975, Corazon decided to scale her newfound business and established CDO
Foodsphere. The company’s reputation to develop high-quality but low-priced processed
meats quickly spread and made CDO a regular staple in every shopping cart.

As a mother herself Corazon understood the value of having meals that can be prepared
easily, taste good, and fit the family budget.

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In time, CDO expanded to industrial markets. Today, CDO supplies processed meats to
90% of quick service restaurants or QSRs in the country.

9. Gregorio G. Sanchez Jr., LactoPAFI

While working as a provincial board member in Cebu, Gregorio

noticed that pigs sold to market were apparently malnourished.

He decided to look into the cause of malnutrition by doing research

in his spare time. Using only pots and pans in his home, Gregorio
conducted several tests and experiments on how to alleviate the
state of malnutrition of Cebu’s livestock.

Despite numerous failures, his persistence finally paid off. He discovered the pigs were
suffering from a type of bad bacteria. His solution was a probiotic bacteria that would
increase the level of good bacteria in the body.

The bacteria would be called LactoPAFI Probiotic Bacteria. Gregorio’s discovery would
reach global acclaim as a leader in probiotics. It is now exported to New Zealand, Norway,
France, Australia, Hong Kong, Japan, and US.

10. Diosdado Banatao, Computer Chips

Diosdado’s life story exhibits perseverance, hope, determination,

and the power of self-belief. The son of a farmer in Cagayan,
Diosdado would walk barefoot just to complete his high school
education. His resilience made him a Magna Cum Laude graduate in
electrical engineering.

His excellence in the academe paved the way for Diosdado to

become a pilot-trainee at the Philippines Airlines or PAL, which would eventually open
doors for a design engineer position at Boeing Co. The opportunity brought Diosdado to
the US where he completed a master’s degree in electrical engineering and computer
science at Stanford University.

Diosdado’s experience working with the top technology companies led to his design of the
first single-chip 16-bit microprocessor calculator. By 1981, Diosdado was commissioned
by Seeq Technologies to assist the Ethernet to find an efficient way of linking computers.
Disodado designed the single- chip controller that provided data-link control and the
transceiver in the first 10-bit Ethernet CMOS.

His success opened doors to build his own company, Monstroni, in 1985 and Chips and
Technology, which made US$ 12 million in the first quarter alone. By 1996, Diosdado sold
Chips and Technology to Intel for US$ 430 million!

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Throughout his success, Diosdado never forgot his roots and Filipino heritage. He set up
the Banatao Filipino American Fund to lend support to Filipino American students in
Northern California who aspire to become electrical engineers.

The ones who succeed are the ones who persevere…

After reading these inspiring stories from our own successful Filipino entrepreneurs, one
quality easily stands out among their many admirable traits; that is, the quality of
embracing failure as a necessity to achieve long-term sustainable success.

These entrepreneurs went through so many adversities and challenges in their lives. Truth
be told, condensing their life stories in paragraphs does not do them justice. A better way
to understand what they went through would be by imagining how we would have felt or
acted if we were in the same situation.

Failure in any form is never easy to accept. Some have described the feeling of failure
from being slapped in the face to getting stabbed in the gut. It is a very painful feeling that
leaves even the most powerful men helpless and stripped of dignity.

However, the ones who succeed are the ones who persevere. They acknowledge failure
not as a termination point but an educational experience. It is a wake-up call on what
needs to get done. These entrepreneurs had three choices to make: fight, flight, or freeze.
Every single one chose to FIGHT.

Is your life worth fighting for?

If you believe in your dream, FIGHT for it. If you believe in your vision, FIGHT for it. If you
believe that success is just around the corner, FIGHT for it.

Deciding to become an entrepreneur is not enough. You have to commit to it. Whatever
you do from that moment on will have repercussions on your life and on those you love.

Ask yourself: Is your life worth fighting for?

Additional Reading:

For more success stories, especially of entrepreneurs in the Cordillera region, you can
visit
 [Link]
weaves-successful-enterprise
 [Link]

Self-Assessment Questions

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Answer the following questions on a piece of paper. If you want, you can also share your
answers in our Google Classroom

 What would you do if your business or only source of income was destroyed like
what happened to Henry Sy, Socorro Ramos, and Mariano Que?
 How would you react if you had lost everything you had gained in a blink of an eye
like what happened to John Gokongwei Jr. and Cecilio Pedro?
 How would you overcome the challenge of large-sized powerful competitors as
Corazon D. Ong and Cecilio Pedro faced?
 What would you do if you woke up one morning and realized you were living in
extreme poverty as what Alfredo Yao, Tony Tan Catkiong, and Diosdado Banatao
experienced?
 If you saw a need or a concern, would you act on it out of passion as Corazon Ong
and Engr. Gregorio Sanchez Jr. did? Or would you be compelled by greed?
Be sure to answer and submit Assignment 6 and Finalize your final output for this
subject.

References:

[Link] BrandRoom. (2019, July 5). Eight Successful Filipino Entrepreneurs Who
Started Small. [Link]. [Link]
filipino-entrepreneurs-who-started-small

Manarang, R. (n.d.). Top 10 Successful Entrepreneurs in the Philippines Story. Tycoon.

Retrieved August 13, 2020, from [Link]
philippines-story/

Villanueva, P. (2013, September 6). 10 Famous Successful Filipino Entrepreneurs.

OurHappySchool. [Link]
entrepreneurs

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