ENTREPRENEURSHIP

Quarter 1 - Module 1
RELEVANCE OF
ENTREPRENEURSHIP
After completing the module, you will be able to:
LET’S TRY THIS! PUT THIS IN MIND
1. distinguish entrepreneurship from the entrepreneur;
2. develop the entrepreneurial mindset;
3. differentiate an ordinary business owner from an
entrepreneur; and
4. identify the salient features of entrepreneurship.
ENTREPRENEUR – refers to a person who strongly
advocates and correctly practices the concepts and
principles of entrepreneurship in operating and managing
self-owned entrepreneurial venture.
ENTREPRENEURSHIP – is the art of observing correct
practices in managing and operating a self-owned business
enterprise by providing goods and services that are
valuable to customers. In addition, it refers to the act of
analyzing community needs and developing product
innovation that will try to solve the needs.
ORDINARY SMALL BUSINESS – pertains to a
business enterprise managed and operated by an
owner who is not an advocate of and does not
practice the concepts and principles of
entrepreneurship.
ENTREPRENEURIAL MINDSET – is a state of
mind/ attitude in making business through
conceptualizing product development.
Task 1: Write True if the statement is correct and False if the statement
is incorrect.
_________________________1. An entrepreneur thinks that
entrepreneurship is simply opening and a business enterprise.
_________________________2. All business owners are
entrepreneurs.
_________________________3. Most owners of ordinary small
businesses view profitability as the core of their business.
_________________________4. The terms ‘entrepreneurship’ and
‘entrepreneur’ are the same in context and can be used interchangeably.
_________________________5. Knowing all the entrepreneurial
concepts will assure a person of becoming a successful entrepreneur.
[Link] business opportunities can you
identify seeing these pictures?
2. What products can you offer using the
raw materials presented in the picture?
ENTREPRENEUR The term “entrepreneur” originates from French
word “entreprendre” which means “to undertake.” It connotes a
business paradigm which signifies the start of a new business
undertaking. It refers to a particular field of practice or process as
compared to an entrepreneur which is a person practicing
entrepreneurship. Comparatively, the relationship is like that of a
manager and the management in which a manager is a person who
practices correctly the concept of management.
ENTREPRENEURSHIP is defined as the art of
observing correct practices in managing and operating a
self-owned wealth-creating business enterprise by
providing goods and services that are valuable to
customers. It also defined as the process of recognizing an
opportunity, testing it in the market, and gathering
resources 5 necessary to go into business.
Entrepreneurship in its simplest sense is creating a new
business venture.
SMALL BUSINESS AND ORDINARY SMALL
BUSINESS Small business refers to a business or
enterprise that correctly adopts and practices the principles
of entrepreneurship. It is owned by one person with a
limited workforce of not more than 20 persons. The term
also includes the small and medium enterprises (SMEs)
that have been strongly promoted by both government and
non government organizations (NGOs) in their desire to
improve the lives of the Filipino people through
entrepreneurship.
On the other hand, ordinary small business pertains to a business
enterprise managed and operated by an owner who is not an
advocate of and does not practice the concept and principle of
entrepreneurship. In the Philippines, small businesses, whether
ordinary or not, are flourishing and sprouting like mushrooms. They
can be found almost anywhere – along streets, municipal roads and
national roads, and in public markets hospitals, schools and
amusement places.
Basic Concepts in Entrepreneurship
[Link] is the primary catalyst for economic growth.
2. To be a successful entrepreneur requires an understanding of how the
economy works.
3. As an ENTREPRENEUR, you accept the risks (calculated risk) and
responsibilities of business ownership.
4. Entrepreneurs start by responding to society's wants and end up
changing society, thereby creating even more wants to be satisfied. As a
result, entrepreneurs are the catalysts that make economic progress
happen.
5. Entrepreneurship contributes much in the development of local
economies. Entrepreneurs are principal sources of venture capital.
Entrepreneurs provide jobs. In doing so, they provide for their own and
others’ financial security.
6. The chances of a new business succeeding are good with effective planning and
management. Entrepreneurs must learn how to recognize opportunity, test that opportunity in
the marketplace, and assemble a team with the necessary expertise to execute the business
concept.
7. The risks of Entrepreneurship are working long hours, having an uncertain income, being
fully responsible, and risking one’s investment.
8. A can-do attitude and desire are important. Successful entrepreneurs are persistent, creative,
responsible, inquisitive, goal-oriented, independent, self demanding, self-confident, risk-
taking, restless, action-oriented, and enthusiastic. Entrepreneurs need communication skills,
math skills, problem solving skills, computer and technical skills, decision-making skills,
organizing and planning skills, teamwork skills, social skills, adaptability skills, and basic
business skills.
9. You may improve your entrepreneurial potentials by strengthening your entrepreneurial
characteristics, by thinking and acting like an achiever, and by developing your skills.
10. Most good business opportunities result from the entrepreneur’s ability to recognize unmet
consumer needs and unique and unfilled market niches. One way to identify opportunities is to
understand industries and examine and analyze industry trends.
FORMS OF ENTREPRENEURSHIP
[Link] Entrepreneurship Any creative and innovative solution
applied to solve social problems Involves social mission Search
for approaches to move poor people out of poverty Bottom line:
people, profit, planet.
2. Business Entrepreneurship For profit Study of systems,
structure, and staffing to make a corporation stay competitive,
innovative, and profitable on a sustainable basis through
keeping the Sense of Mission alive as you grow, re-instilling
customer/product vision in every employee, fostering high-
speed innovation, and making self-inspired behavior for the
organization standard.
SALIENT FEATURES OF ENTREPRENEURSHIP The salient features of
entrepreneurship provide better understanding of the whole concept. They also act as the
point of reference in determining whether a particular business endeavor is operating within
the realm of entrepreneurship. From its operational definition, entrepreneurship consists of
five salient features.
1. IT IS AN ART OF CORRECT PRACTICES
✓ Entrepreneurship is an art not a science. It is not governed by fixed and absolute rules,
whereas science is. Thus there is constant change which denotes movement and innovation.
Therefore, is not static or stagnant. It continuously grows, develops, improves and expands;
the change does not stop.
✓ Entrepreneurship is dynamic. By the moment the economic activity changes, so with the
political, social and entrepreneurial activities.
✓ It is closely related creativity. By creativity, there is constant change or evolution that
contributes towards the enhancement of the enterprise. Creativity and innovation are the
backbone of entrepreneurship.
2. IT IS A WEALTH CREATING VENTURE
✓ In most instances, ordinary small businesspeople equate wealth
with profit. Entrepreneurship, however, is operating within the
concept wealth creation rather than profit generation. Wealth is
defined as the abundance of money, property or possession.
3. IT PROVIDES VALUABLE GOODS AND SERVICES
✓ The owner of a business, in most instances, is engaged in the sale of goods
and services. However, the mere act of selling goods or providing services does
not make a person perform or act within the concept of entrepreneurship.
Anyone can sell goods or services for price.
✓ One essential principle in entrepreneurship then is, “not to sell waste to
consumers but only valuable goods and services. Anything of no value to
anybody is definitely a waste. The entrepreneur defines value from the
perspective of the buyers and not only from his or her own because what is
valuable to the entrepreneur may not be of any value to the consumers.
4. IT ENTAILS OPENING AND MANAGING THE SELF-OWNED
ENTERPRISE
✓ The entrepreneur opens his/her business under the principle of
entrepreneurship. It must be self-owned to qualify as an entrepreneurial
endeavor. A business is considered self-owned when the person managing
its daily activities is also the owner. This is a straightforward requirement
of entrepreneurship. Businesses that are being managed by others for the
benefit of the owners do not fall within the sphere of entrepreneurship.
Such businesses are operating under the concept of intrapreneurship.
5. IT IS A RISK-TAKING VENTURE
✓ The basic concept of risk in entrepreneurship can be expressed in
this statement, “Risk is inherent in an entrepreneurial venture.”
✓ Once an entrepreneurial venture is born because of new ideas or
opportunities, risk comes simultaneously with the venture.
✓ Risk cannot be detached from any entrepreneurial venture and the
only way to remove it is to close the venture.