THIRD QUARTER ______Entrepreneurship_______________

WEEK 1 Relevance of Entrepreneurship to an

Organization
LESSON 1
1. Development of managerial
TOPIC: RELEVANCE OF THE COURSE capabilities

Objectives: At the end of the lesson, the The greatest significance of

entrepreneurship lies in the fact that it
learners shall be able to:
helps in identifying and developing
1. discuss the relevance of the course managerial capabilities of
2. explain the factors affecting entrepreneurs. An entrepreneur
entrepreneurship studies a problem, identifies its
3. Explain the core competencies in alternatives, compares the alternatives
Entrepreneurship in terms of cost and benefit
implications, and finally chooses the
best alternative.

2. Creation of organizations
Key Concepts: Entrepreneurship results in the
creation of organizations when
entrepreneurs assemble and
Introduction: coordinate physical, human, and
financial resources and direct them
Entrepreneurial activities today have towards achievement of objectives
become very important and are keys to through managerial skills.
economic development. Growth, industrial
development, including employment 3. Improving standard of living
generation, depend upon entrepreneurial
behavior of a country. By creating productive organizations,
entrepreneurship helps in making a
Entrepreneurs are the reason for a wide variety of goods and services
large quantity of highly developed available to the society which results
industries which result to greater into higher standard of living for the
employment opportunities for people.
unemployed youth, increase in per capita
income higher standard of living and 4. Means of economic development
increased individual saving, revenue to the Entrepreneurship involves creation
government in the form of income tax, and use of innovative ideas,
value added tax, export duties, import maximization of output from given
duties, and balanced regional resources, and development of
development. managerial skills. All these factors are
essential to the economic
development of a country.
 Concept of Entrepreneurship risks

The word “entrepreneur” was 1. Environmental factors

derived from the French verb These factors relate to the
entreprendre which means “to conditions in which an entrepreneur must
undertake.” This refers to those who work. Environmental factors such as
“undertake” the risk of new political climate, legal system, economic
enterprises. An enterprise is created and social conditions, and market
by an entrepreneur and the process of situations, contribute significantly towards
its creation is called entrepreneurship. the growth of entrepreneurship. For
example, political stability in a country is
Factors Affecting Entrepreneurship essential for smooth economic activity.
Personality Factors
Who can be entrepreneur?
Personal factors, are an
entrepreneur core competency
which include: There is not one single quality or
skill to define an entrepreneur.
a. Initiative – does things before being
asked Successful entrepreneurs come in
various ages, gender, race, and social status.
b. Proactive- identifies and utilizes They also differ in education and experience.
opportunities However, research indicates that most
c. Perseverance- works against all odds successful entrepreneurs share certain
to overcome obstacles and is never personal attributes, including creativity,
complacent with success. dedication, determination, flexibility,
d. Problem-solver- develops and leadership, passion, self-confidence, and
maintains relationship with customers “smarts”.
and financiers; conceives new ideas
and introduces innovative solutions o Creativity is the spark that drives
e. Persuasion- convinces customers and the development of new products
financiers to patronize his business. ideas or ways to do business. It is
the push for innovation and
f. Self-confidence- makes decisions and
improvement.
sticks to his decisions
o Dedication is what motivates the
g. Self-critical- learns from his mistakes person to work hard to get the
and from experiences of others endeavor off the ground. Planning
h. A Planner- collects information, and ideas must be joined by hard
prepares a plan, and monitors work to succeed. Dedication makes
performance it happen.

i. Risk-taker- is willing to take calculated

o Determination is the extremely endeavor. The former gives a person
strong desire to achieve success. It good instinct, the latter, expertise.
includes persistence and the ability Many people have smarts they do
to bounce back after rough times. not recognize. A person who
It persuades the entrepreneur to successfully keeps a household on
make the 10th phone call, after a budget has organizational and
nine have yielded nothing. For the financial skills. Employment,
true entrepreneur, money is not education, and life experiences
the motivation. all contribute to smarts.

o Flexibility is the ability to move

quickly in response to changing
market needs. It is being true to a
dream while also being mindful
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of market realities.
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o Leadership is the ability to create watch?v=-XU8_ex4nBk
rules and to set goals. It is the
capacity to follow through to see
that rules are followed, and goals
are accomplished.

o Passion is what gets entrepreneurs

started and keeps them there. It
gives entrepreneurs the ability to
convince others to believe in their
vision. It cannot substitute for
planning, but it will help them to
stay focused and to get others to
look at their plans.

o Self-confidence comes from

thorough planning, which reduces
uncertainty and the level of risk. It
also comes from expertise. Self-
confidence gives the entrepreneur
the ability to listen without being
easily swayed or intimidated.

o “Smarts” consists of common

sense joined with knowledge or
experience in a related business or