LESSON 1

EXPLAIN THE CONCEPT OF ENTREPRENEURSHIP

WHAT IS THIS LESSON ABOUT?

This lesson discusses the concepts of entrepreneurship. It includes its meaning,

objectives, importance, and role to socio-economic development.

WHAT WILL YOU LEARN?

At the end of the lesson, you should be able to:

1. give the importance of entrepreneurship; and
2. explain the role of entrepreneurship in socio-economic development.

LET US STUDY

Words to Study

Economy is the system by which the production and consumption of goods and
services is organized in a country or community.
Employment is the state of being employed or having a job; the occupation for
which you are paid.
Enterprise is any activity which provides customers with a product
(goods/services) with a view to making a profit.
Entrepreneurship is the practice of starting new organizations, particularly new
business, generally in response to identified opportunities.
Small business is one that is independently owned and operated by the owner.

One of the current issues under consideration at the moment is “the problem of
unemployment”. As you can understand, the importance of getting work for all citizens
has become a priority concern for the government.

Entrepreneurship and Socio-Economic Development

 Transforming ideas into economic opportunities is the index of

entrepreneurship. You only have to be a keen observer of what is happening in
your environment. There and then you can formulate what business you can
later on engage in.

 Entrepreneurship is the capacity for innovation, investment and creation and

expansion in new markets, products and techniques. It has an extra ordinary
feature which is the creation of something new or something unique. It is also a
new way of making something out of something that already exists thus,
creating new markets.

 Economically, entrepreneurship invigorates markets. The formation of new

business leads to job creation and has a multiplying effect on economy.

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  Socially, entrepreneurship empowers citizens, generates innovation and
changes mindsets. These changes have the potential to integrate developing
countries into the global economy.

 Entrepreneurship is an important factor in economic development. This means

that a country or society with a lot of entrepreneurs would tend to be a
productive community and thus produce wealth and spur economic
development.

The following benefits that result from entrepreneurship explain why

development takes place when a society becomes entrepreneurial:

1. Entrepreneurship creates employment

When entrepreneurs put up a business, they often need to hire at least one or two
other people in order to get things done. In fact, some businesses employ
hundreds and even thousands of workers.

2. Entrepreneurship improves the quality of life

Entrepreneurs continuously innovate and develop new products and
services based on what they perceive to be the needs of the society. They also look for
ways by which these goods and services could be more efficiently produced. Such
innovative efforts lead to better machines and a more efficient production system. The
development of new products and the delivery of needed services make life easier and
comfortable for society.

3. Entrepreneurship contributes to a more eqitable distribution of income and

therefore eases social unrest.

By putting up an enterprise in the locality, entrepreneurs are actually

dispersing the benefits of development to other parts of the country.

When income is evenly distributed, entrepreneurship flourishes. People have

more money to buy the products and services they need, thereby bringing in more
profits to entrepreneurs. At the same time, people may also have enough to invest on
enterprises of their own, thus increasing the supply of entrepreneurs.

The eradication of poverty will help solve social problems like crime, juvenile
delinquency, and malnutrition.

4. Entrepreneurship utilizes resources for national productivity.

Our country will develop faster economically if all its resources are maximized.
For example, in the rural areas we have vast agricultural areas for the production of
cereals and vegetables. If these areas are developed and used to the maximum, the
government need not to import rice and other cereal products and other agricultural
products, thus, it saves much for the country.

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5. Entrepreneurship brings social benefits through government.

With the revenues the government collects from taxes, duties, and licenses
paid by the entrepreneurs, the government allocate the money to different
services to the communities. These services come in the form of
infrastructure facilities such as roads and bridges, educational and
medical services and facilities, and maintenance of peace and order.

Activity:
With the readings presented to you, you are now convinced that you can be an
entrepreneur and that you can help alleviate poverty in our country.
If you wish to start a business and become an entrepreneur, what will be your
personal gains? List at least 3 Personal Gains:
What would your community and your country gain if you establish a business
and become an entrepreneur?

Give at least 3 Personal Gains in your business (My gain, Community Gain and
Country Gain) by considering the table below.

My Businesses My Gain Community Gain Country Gain

1.

2.

3.

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LESSON 2

IDENTIFY DESIRABLE CHARACTERISTICS OF A SUCCESSFUL ENTREPRENEUR

BASED ON PECs

WHAT IS THIS LESSON ABOUT?

This lesson deals with the desirable characteristics of a successful entrepreneur

based on the behavioral indicators of Personal Entrepreneurial Characteristics (PECs)
cluster

WHAT WILL YOU LEARN?

At the end of the lesson you should be able to:

1. identify the desirable characteristics of a successful entrepreneur;
2. explain and differentiate the clusters of Personal Entrepreneurial
Characteristics (PECs); and
3. recognize and differentiate the behavioral indicators of each cluster.

LET US STUDY
Words to Study

Integrity - uprightness of character, honesty

Innovation - acts of introduction something new
Obstacle - a hindrance or obstruction in either physical or moral sense
Opportunity - a favorable or advantageous circumstance
Passion - a powerful emotion, such as love joy
Persistence - act of persisting in any course or enterprise; perseverance
Risk - the possibility of suffering harm or loss

Do you have a strong desire to become a successful entrepreneur? Would you

like to know if you have what it takes to build a successful business?

1. Integrity - someone once said, “Right is right even if

no one is doing it, and wrong is wrong even if everyone
is doing it” We all hear stories about corporate greed
and corruption. However, the truth is, successful
entrepreneurs are rated “being honest with everyone”
the number one factor of their success.
2. Self –discipline – to become a successful
entrepreneur you have to be highly disciplined. If you
are trying to build a business from the ground up, you
will be faced with doing all the job functions of a
company, such as accounting, marketing and
costumer service. You have to develop the ability to get
things done, even when you don’t feel like it. Luckily,
you learn self-discipline with the right information and
conscious effort. 4
 3. People skills - another critical factor among
successful entrepreneurs is having good people skills.
You should make an effort to genuinely like, respect,
and appreciate other people. The ability to win people
over will carry you far in all walks of life, especially
your own business.

4. Strong work ethics – there’s no substitute for hard

work when it comes to becoming a successful
Characteristics entrepreneur. Most people want to do the fastest and
easiest solution when it comes to work. To be
and Qualities successful, dedicate yourself to persistent, productive,
and old fashioned hard work.
of a
5. Passion – you need to be passionate about your
business. This doesn’t necessarily mean you have to
build a business around something you love. You
Successful should identify a profitable market and then build your
business.
Loving your business will also make it easier to
Entrepreneur get through the start-up phase, and other future
obstacles.

6. Strong leadership qualities- being able to

communicate effectively, motivate others, sell your
ideas, and be decisive, are just a few qualities of a good
leader. In order to become a successful entrepreneur
you must dedicate yourself of improving your
leadership and abilities.

8. Well-organized – One of the main reason why small

businesses fail is lack of organization. Everyone can
learn organization skills with enough hard work,
practice and persistence.

9. Sales ability- The ability to convince others to make

a conscious decision is a key of becoming a successful
entrepreneur “People don’t buy for logical reasons.
They buy for emotional reaso
ns”. Being able to appeal to other people emotions is
the key to selling your ideas, products or services.

Personal Entrepreneurial Characteristics Clusters and Behavioral Indicators

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 Behavioral scientists and psychologists who have been studying entrepreneurs
found that successful entrepreneurs all over the world have some characteristics in
common. They were able to identify ten personal entrepreneurial characteristics
(PECs) under the following clusters:

I. Achievement Cluster
Successful entrepreneurs are people who accomplish things. They have what
psychologists call the “need to achieve” They want to perform tasks excellently not
only for prestige or money but for the sake of excellence itself. When entrepreneurial
individual work on something, they like to know afterwards that it was a job well done
and this alone is enough to make them happy.

Achievers rate high in the following PECs

1. Opportunity-Seeking. An entrepreneur is said to be a good opportunity- seeker
if he sees and acts on new business opportunities and seizes unusual
opportunities to acquire financing, equipment, land and work space or
assistance.
2. Persistence. A persistent individual is one who
a. takes different actions to overcome an obstacle
b. makes personal sacrifice or spends extraordinary efforts to complete a
job
c. sticks to his judgments in the face of opposition or early lack of success

3. Commitment to the Work Contract. The true-blue entrepreneur is committed

to the work that he has agreed to do. When he accepts a job, he takes full
responsibility for its completion. No job is too small, too dirty or too difficult to
be done. When necessary, he pitches in for workers to get things done. He
exerts extra effort to satisfy the costumer. In the end, if he fails he would take
full measure of the blame. But if he succeeds, he expects to get full credit.

4. Risk Taking. A gambler is a person who takes high risks and so he tends to
lose all his money and even his shirts in the end. An entrepreneur is not a
gambler. A successful entrepreneur takes calculated, moderate, or reasonable
risks where he perceives the chances for winning to be good. In other words, he
states a preference for situations that involve moderate risks.

5. Demand for Quality and Efficiency. A true entrepreneur is not satisfied with
mediocre work. He sets a high standard of performance. The high standard of
performance makes him act to meet or exceed existing standards of excellence
or improve on past performance. He strives to do things better, faster, or
cheaper.

II. Planning Cluster

Going into business is the result of deliberate goal-setting, tireless information-
seeking and systematic planning and monitoring by the entrepreneur.

a. Goal-Setting. An entrepreneur always thinks not only of what he wants to

accomplish day-to-day but also in one, two, or five years from now. In other
words, he sets clear and specific short-and-long term objectives. He thinks of

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 today’s activity as a small step towards that which he eventually wants to
accomplish.
b. Information-Seeking. As a careful planner, the successful entrepreneur
always makes it a point to seek information that is relevant and useful to his
present or future business. He obtains information from clients, suppliers,
experts, competitors, contacts, and information networks. He also consults
experts for business or technical advice.
c. Systematic Planning and Monitoring. The successful entrepreneur does not
only set short-and-long –term goals. He does not only seek information
regularly. He also systematically plans and monitors his activities and
performance. He develops and uses alternatives and monitors his progress. He
is ready to switch to alternative strategies when necessary to achieve his
goals.

III. Power Cluster

The personal motto of a successful entrepreneur is “I can”. He thinks that he
can achieve things; he can convince people to his way of thinking; he can influence the
outcome of events. He is a natural leader. He is decisive and he believes in his power.
a. Persuasion and networking. A persuasive person who readily establishes a
network or personal business contracts around him usually makes a good
entrepreneur. In order to persuade others, the entrepreneur uses deliberate
strategies. In order to accomplish his business objectives he uses his
network of useful friends and acquaintances.
b. Self-Confidence. The entrepreneur exudes self-confidence. He strongly
believes in himself and his own abilities. No challenge is too difficult nor is a
task too big that the entrepreneur would indulge in self-doubt. When he
enters a business, it is because he is confident that the business would be
successful and profitable.
Activity 1

Almost anyone can develop the qualities necessary to succeed as an

entrepreneur. To illustrate, consider this question.

Who among the following is the most successful entrepreneur?

1. A 35 year-old farmer who has owned a two hectare pineapple plantation for 10
years, makes just enough to get by, but loves what he is doing, and calls
everyone in the barangay a friend.

2. A 30 year-old CEO of a software firm who works 70 hours a week, stays

stressed, never sees his family, but makes five million pesos in revenue per
year.

3. A 35 year-old single mom who makes money online with internets, and gets to
spend all the time she wants with her kids.

4. A 22 year-old college dropout who created a few websites that he manages a few
hours per week and now makes enough to travel the world, spends time with
friends and family, and pursues his favorite hobbies.

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Activity 2

INSTRUCTIONS

I. This questionnaire contains 85 sentences. Read each one and decide which
describes you better. Be honest to yourself. The questionnaire’s purpose is
to help you make a self-evaluation; it is not a test and there are no
correct/wrong answers.
II. Choose the number associated to the sentence that describes your behavior:

1. never
2. seldom
3. sometimes
4. most of the time
5. always

III. Write down the chosen number on the blanks provided for in each sentence.
See example:

I keep myself calm in these tense situations.

The person considered feels that the situation above seldom describes
his/her behavior; therefore he/she writes the number 2 on the blanks.

PECS SELF-RATING QUESTIONNAIRE

1. I look for things that need to be done. ______

2. I like challenges and new opportunities. ______
3. When I face a difficult problem,
I spend a lot of time to find a solution. ______
4. When I begin a work or project,
I gather all possible information available. ______
5. I get upset when things are not done well. ______
6. I make an effort to accomplish my work. ______
7. I find ways doing things faster. ______
8. I establish my own goals. ______
9. I plan a big job by dividing it into several small tasks. ______
10.I think of different solutions to solve problems. ______
11.I tell people when they do not perform as expected. ______
12.I feel I will succeed in any activity I engage. ______
13.I get support by others for my suggestions. ______
14.I develop strategies to influence others. ______
15.I compare my achievements to my expectations. ______
16.I know how much money is necessary
to develop my projects or activities. ______
17.I listen carefully to any person who talks to me. ______
18.I know what needs to be done;
I don’t need anyone to tell me what to do. ______

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19.I prefer to accomplish task
that I dominate and feel safe doing them. ______
20.I insist several times to get someone to do what I want. ______
21.I search for advice from people
who know about the different aspects of my business ______
22.It is important for me to do high quality work. ______
23.I work for several hours and make
personal sacrifices in order to finish my work in time. ______
24.I don’t use my time in the best possible way. ______
25.I do things without a specific target in mind. ______
26.I carefully analyze the advantages
and disadvantages of several ways to execute a task. ______
27.I have my mind focused on many projects at the same time. ______
28.If I dislike someone’s attitude, I tell him/her. ______
29.I change my way of thinking
if other people strongly disagree with my point of view. ______
30.I convince other people of my opinions. ______
31.I don’t spend a lot of time thinking
how to influence other people’s ideas. ______
32.Regularly I check how far I am
from achieving the goals I have set. ______
33.I know how much money
I can expect in return for my projects. ______
34.I get upset when I don’t do what I want. ______
35.I do things even before it is clear to me
how they should be done. ______
36.I look for opportunities of doing new things. ______
37.When something hinders what I am trying to do,
I try to find other ways to accomplish my task. ______
38.I often do things without looking for
some information concerning the task. ______
39.My results at work are better than those from
people who work with me. ______
40.I do what it takes to have my work done. ______
41.I get upset when I waste time. ______
42.I do things that help me accomplish my objectives. ______
43.I try to anticipate all the problems that might happen and think
of what can be done in any case any of them take place. ______
44.Once I have chosen my solution to a problem,
I don’t change it. ______
45.It is difficult for me to instruct people
on what they should do. ______
46.When I try something difficult or something
that challenges me. I feel confident I will succeed. ______
47.I show people I am capable
of executing the task they have for me. ______
48.I seek important people to help me reach my goals. ______
49.I don’t know how far I am from achieving my goals.
50.I don’t care for the financial consequences of my acts. ______
51.I have failed in the past. ______

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52.I do things before they become urgent. ______
53.I try to find new tasks,
different from the ones I have already done. ______
54.When I face a great difficulty, I look for other tasks. ______
55.When I have to do a job for someone, I ask many
questions to be sure I understood what he/she wants. ______
56.When my work is satisfactory,
I don’t depend more time trying to improve it. ______
57.When I am doing something for another person, I make
a lot of effort so he/she is very satisfied with my work. ______
58.I seek cheaper ways of doing things. ______
59.My goals correspond to what is important to me. ______
60.I face problems when they appear
instead of anticipating them. ______
61.I think of different ways of solving problems. ______
62.I show when I disagree to someone. ______
63.I do risky things. ______
64.I am very persuasive with other people. ______
65.When trying to reach my goals, I look for
solutions that would be positive for all people involved. ______
66.I coordinate the performance of people who work with me. ______
67.I have good control of my finances. ______
68.There have been times when I took advantage of people. ______
69.I wait for the orders of someone else, and then I act. ______
70.I take advantage from opportunities as they appear. ______
71.I try several ways to overcome the obstacles that disturb the accomplishment of
my goals. ______
72.I look for different sources of information
that could help me in my tasks or projects. ______
73.I want my business to be the best in the branch. ______
74.I don’t let my work interfere with my personal life. ______
75.Most of the money I use in my project or work is borrowed. ______
76.I have a clear vision of where I intend to get in the future. ______
77.I have logical and systematic approach of my activities. ______
78.If a way of solving a problem doesn’t work out, I try another. ______
79.I tell people what they have to do,
even if they don’t want to do it. ______
80.I stick to my decision, even when other people
strongly disagree with me. ______
81.I can’t change people’s opinion,
even with my strongest points of view. ______
82.I know who is able to help me to reach my objectives. ______
83.When I work with a deadline, I check regularly
if I will be able to finish my work in time. ______
84.My projects include financial information. ______
85.I have no problems to recognize something I don’t know. ______

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 SCORE SHEET PECs SELF – RATING QUESTINNAIRE

Instructions:
1. Write down the answer for each sentence on the lines above the correspondent
number of the statement. Note that the numbers of statements are serial in each
column.
2. Make the calculation indicated in each line to compute the points for each
characteristic.
3. Sum up all the point obtained for each characteristic to obtain the total score.

Choice for the statements Score Characteristic

____ + _____ + _____+ _____ + _____ + 6
(1) (18) (35) (52) (69) = _____ Shows initiative
____ + _____ + _____+ _____ + _____ + 6
(2) (19) (36) (53) (70) = _____ Is aware of opportunities and
____ + _____ + _____+ _____ + _____ + 6 takes advantages of them
(3) (20) (37) (54) (71) = _____ Is perseverant
____ + _____ + _____+ _____ + _____ + 6
(4) (21) (38) (55) (72) = _____ Searches for information
____ + _____ + _____+ _____ + _____ + 6
(5) (22) (39) (56) (73) = _____ Is aware of the importance of
____ + _____ + _____+ _____ + _____ + 6 high-quality work
(6) (23) (40) (57) (74) = _____ Knows the importance of
____ + _____ + _____+ _____ + _____ + 6 fulfilling tasks
(7) (24) (41) (58) (75) = _____ Is efficiency – oriented
____ + _____ + _____+ _____ + _____ + 6
(8) (25) (42) (59) (76) = _____ Is objective – oriented
____ + _____ + _____+ _____ + _____ + 6
(9) (26) (43) (60) (77) = _____ Makes systematic planning
____ + _____ + _____+ _____ + _____ + 6
(10) (27) (44) (61) (78) = _____ Looks for solutions for
____ + _____ + _____+ _____ + _____ + 6 problems
(11) (28) (45) (62) (79) = _____
____ + _____ + _____+ _____ + _____ + 6 Is assertive
(12) (29) (46) (63) (80) = _____
____ + _____ + _____+ _____ + _____ + 6 Is self – confident
(13) (30) (47) (64) (81) = _____
____ + _____ + _____+ _____ + _____ + 6 Is persuasive
(14) (31) (48) (65) (82) = _____
____ + _____ + _____+ _____ + _____ + 6 Uses strategies to influence
(15) (32) (49) (66) (83) = _____ people
____ + _____ + _____+ _____ + _____ + 6
(16) (33) (50) (67) (84) = _____ Monitors goals, achievements
____ + _____ + _____+ _____ + _____ + 6 and performances\
(17) (34) (51) (68) (85) = _____ Is aware of the importance of
FINAL SCORE = ______________________ financial information
(Entrepreneurial Profile) Correction Factor

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 PECs SELF – RATING QUESTIONNAIRE - RESULTS
PROFILE
Shows initiative

Is aware of opportunities and

takes advantages of them
Is perseverant

Searches for information

Is aware of the importance of

high-quality work
Knows the importance of fulfilling
tasks
Is efficiency – oriented

Is objective – oriented

Makes systematic planning

Looks for solutions for problems

Is assertive

Is self – confident

Is persuasive

Uses strategies to influence

people
Monitors goals, achievements and
performances\
Is aware of the importance of
financial information
Correction Factor

5 10 15 20 25

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Post – Test

Let us find out how much you already know. Read and understand the items being
described below. Choose the letter of the correct answer and write it in your quiz
notebook.

1. Which of the following is the index of entrepreneurship?

a. Developing a small elite class
b. Transforming ideas into economic opportunities
c. Searching, identifying and developing raw materials
d. Innovating and developing new products and services

2. Which of the following is NOT closely associated with entrepreneurship?

a. flexibility factors
b. change and creativity
c. knowledge and innovation
d. leadership
3. What happens when entrepreneurial activities slow down?
a. Income is evenly distributed
b. Tax revenues are increased
c. Quality of life is improved
d. Country’s unemployment rate goes up
4. Which of the following is NOT true about entrepreneurship?
a. Entrepreneurship contribute significantly to the continuous improvement of
living standards
b. Entrepreneurship helps the development of a handful of people getting rich
through enterprise
c. Entrepreneurship activities slow down the country’s unemployment rates
d. Entrepreneurship provides an opportunity for making unproductive use of
capital resources
5. An entrepreneur is aware of ________________?
a. his family’s activities
b. his business competitors
c. the way he carries himself in public
d. the demand for products or services in his community
6. Self-discipline is important in putting up a business. Which statements below
contribute to the success of an entrepreneur?
a. Develop the ability to get things done, even when you don’t feel like it
b. Dedicate yourself in improving your leadership, skills and abilities
c. Being able to appeal to other people’s emotions in selling your ideas,
products or services
d. Identify a profitable market and then build your business
7. To communicate effectively is one quality of a good entrepreneur. Which of the
options below is the most important?
a. Sales ability
b. Self discipline
c. Strong work ethics
d. Strong leadership qualities
8. In business, it is the survival of the fittest that counts. Which of the statements
below best describes competitiveness?

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 a. Identify a profitable market and build your business
b. Make an effort to genuinely like, respect and appreciate other people
c. Learn self discipline with the right information and conscious efforts
d. Play to win, but never to sacrifice your integrity for the sake of a few pesos.

9. Which PECs behavioral indicator meets or beats existing standards of

excellence to improve performance?
a. Opportunity seeking
b. Persuasion and networking
c. Demand for quality and efficiency
d. Commitment to the work contract
10.Which of the following statements is not a good PECs indicator?
a. Developing and using alternatives to monitor progress
b. Ready to adopt to alternatives or strategies when necessary
c. Developing systematic plans and monitoring activities and performance
d. Accomplish business objectives and use of network of friends and
acquaintances

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