Group 1

Entrepreneurship Defined
what is entrepreneurship? Essentially, entrepreneurship is the process of developng,
organizing and running a new business to generate profit while taking on financial risk.

Concept of Entrepreneurship:
Entrepreneurship is an innovative function. it is a leadership rather than a ownership.
The process of innovation maybe in the form of
1. Introduction of New Project
2. Use of a New Method of production
3. Opening of a New Market
4. The conquest of New Source of supply Raw Material

TRADITIONAL CONCEPT Ability and aptitude to bear various types of business related
risk and facing of uncertainties.

MODERN CONCEPT
The ability to establish new enterprise, and carrying out new various improvements in
the enterprise.

Risk Bearing capicty. Entrepreneurship involves taking of risks and making the
necessary investments under conditions of uncertainty. Entrepreneurs are "risk-taker"-
people who don't fear anything in business.

Organization bulding- Entrepreneurship is ability to connect and coordinate the

productive resources to organazie a venture and enterprise. It is bringing together the
factors of production and to organize them.

Managerial and Leadership

Skills
► Entrepreneurship is the process of bringing together creative and innovative ideas
and actions with the management & leadership skills to mobilize the
appropriate people, money and operating resources to create wealth in the process.
► Entrepreneurs can translate their ideas into action with management and leadership
skills.

Innovative Function
Innovative is specific function of entrepreneurship.
► It is the means by which the entrepreneur either create new wealth- producing
resources or endows existing resources with enhanced potential for creating wealth.

HIGH LEVEL NEED FOR

ACHIEVEMENT
► THE PERSON WHO ARE MOTIVATED WITH THE NEED FOR A HIGH
ACHIEVEMENT
HAVE A HIGH LEVEL OF
ENTREPRENEURIAL ACTIVITIES.

► THEY HAVE A DESIRE TO BE SUCCESSFUL IN COMPETITIVE

SITUATIONS.

SEARCH FOR PROFITABLE OPPORTUNITIES

Entrepreneurship is actively
searching for opportunities to do new things or to do existing things in new ways for a
profitable business.
Potential entrepreneurs are always looking for unique opportunities to fill needs and
wants.

Wealth Creation
► Entrepreneurs are economic agents who transform demand into supply and they
transform resources into useful goods & services, that lead to creation of wealth and
industrial growth.

Change Agent
"This is modern concept of Entrepreneurship. The entrepreneur becomes the change
agent who transforms the resources into useful goods and services, often creating the
circumstances that lead to industrial
growth."

Process of Creating New Values

► It is also a modern concept.
► Through Entrepreneurship new products, services, transactions, approach,
resources technologies and markets are created that contribute some value to the
community or marketplace.
► Values can be created when resources are transformed into output such as products
and services.

ANNOTATION
 Entrepreneurship may be classified in:
Establisment of new enterprises based
Function based
Combination based
Decision making base > Innovation based

ESTABLISHMENT OF NEW
ENTERPRISES BASED
According to Prof. Musselman & Jackson, "entrepreneurship is the inventing and risking
of time, money and effort to start a business.
► According to Prof. Udai Pareek And Manohar Nadkarni, "Entrepreneurship refers to
the general trend of setting up new enterprises in a society."

FUNCTION BASED
► According to Joseph A. Schumpeter,
"Entrepreneurship is an innovative function, it is an leadership rather than an
ownership."

COMBINATION
BASED
▸ Many scholars elaborate entrepreneurship as the combination of functions and
activities, and organization.
► According to H. W. Johnson, "Entrepreneurship is a composite of three basic
elements- inventions, innovation and adaptions.

DECISION
MAKING BASED
According to Lamb, " Entrepreneurship is that form of social decision making performed
by economic innovations."
► This definition focus on social responsibilities and role of business.

Innovation Based
► According "Entrepreneurship can be described as creative and innovative response
to the environment."
► Entrepreneurship is an activity of linking the business with the society and
environment.

Role and Importance of Entrepreneurship

Help in bringing changes in Social Framework
• Contribution in the formation of Industrial Climate
• Contribution to generate employment opportunities
• Contribution to raise the Standard of Living
•Help in removing Regional Disparities
•Encouragement to Investigation & Research

Risk and Rewards of going into business

Risk of going into business
1. Possibility of Failure
There is always a chance that a business can fail. Even if your plans are good, one
wrong decision like choosing the wrong product, setting the wrong price, or spending
money on the wrong things can cause big problems. Sometimes, even a small mistake
can lead to losing money or closing the business. That’s why business owners need to
be careful and think wisely before making any decision.

2. Unpredictable Business Conditions

In a business, especially if it's small, unexpected changes can happen anytime like
changes in the economy, new laws, or new competitors. For example, if the prices of
supplies suddenly go up, or if a new competitor offers cheaper products, your business
might lose money. Big companies have more money and staff to deal with these
problems, but small businesses usually don’t. That’s why it's important for an
entrepreneur to be ready, flexible, and have a good plan to handle surprises.

3. Long Hours of Work

Being an entrepreneur is not easy because you have to work almost all day. It's not like
a regular 8-to-5 job. Sometimes you even work at night or on weekends. You need to
check your earnings, talk to customers, manage stocks, and more. Because of this, you
might have less time for your family, friends, or yourself. That’s why you need to
manage your time well and take care of your health to avoid burnout.

4. Unwanted or Unexpected Responsibilities

When you own a business, you don’t just do one job. At first, you might think you’ll just
sell products, but later you’ll also do the budgeting, promotions, managing employees,
and even cleaning. In the beginning, you often do everything yourself. It can be hard,
especially if you don’t have experience in some areas. But this is part of being an
entrepreneur, you have to learn many things and be open to learning new skills.

Rewards of going into business

1. Having Unlimited Opportunity to Make Money
One of the greatest motivations for starting a business is the potential for unlimited
income. Unlike being employed where earnings are fixed or limited to promotions and
raises, business owners can scale their income based on effort, smart strategies, and
market demand. Successful entrepreneurs like Steve Jobs, Elon Musk, or local small
business owners all started with ideas and worked hard to create value. The more value
a business creates for customers, the more income it can generate. However, it’s
important to note that success doesn't come overnight it requires persistence, good
timing, and market understanding.

2. Being Your Own Boss

Becoming your own boss means having control over your time, decisions, and career
direction. This is a major reward for many people who feel limited or restricted in
traditional jobs. Entrepreneurs enjoy the freedom to make their own rules, build their
own culture, and work on their own terms. But this freedom also comes with great
responsibility every decision you make can lead to success or failure. Still, having that
power to shape your own path is deeply rewarding and motivating.

3. Tapping Your Creativity

Starting and running a business allows individuals to bring their ideas to life. Whether
it's a new product, a fresh marketing approach, or a unique customer experience,
entrepreneurship gives you the platform to innovate. Business isn’t just about numbers;
it's also about expression and building something meaningful. Entrepreneurs can align
their business with their passions, interests, or social causes. This creative aspect
keeps the work exciting and personally fulfilling.

4. Overcoming Challenges and Finding Fulfillment

Every business faces challenges, from financial difficulties to competition and market
changes. But overcoming these builds resilience, confidence, and personal growth. The
journey of solving problems and learning from mistakes can be tough, but it gives a
deep sense of achievement. Many entrepreneurs say the process, not just the profit, is
what makes entrepreneurship worthwhile. Facing challenges also helps build essential
life and leadership skills.

5. Helping Others
Entrepreneurs don’t just help themselves they contribute to society by creating jobs and
opportunities. By hiring employees, paying suppliers, and supporting other small
businesses, they stimulate the economy. Many also give back through community
programs, charities, or by mentoring others. A successful business becomes a source
of growth and support for many people, making entrepreneurship a powerful tool for
social impact.

6. Building an Entrepreneurial Legacy

A well-built business can last for generations, providing income and opportunities for
family members. It can become a family legacy, with values, stories, and
entrepreneurial spirit passed on to children and grandchildren. Beyond money, this
legacy can include a strong reputation, connections, and a culture of innovation. Many
family-owned businesses remain successful because of the values and lessons that are
carried on over time.

Conclusion
Going into business is more than just making money it’s about freedom, creativity,
impact, and legacy. While the path can be challenging, the rewards can be deeply
fulfilling. These six benefits show why many people choose the entrepreneurial journey,
even if it's risky. For those with vision, passion, and commitment, entrepreneurship can
be a life-changing experience.

Leader: Jerwin G. Aplacador

Members:
Bryan Clifford R. Angeles
Mitzi Artuz

References
https://www.slideshare.net/slideshow/entrepreneurship-
1pdf/256595382?fbclid=IwY2xjawL_JxdleHRuA2FlbQIxMQABHurtvvR3Nmof7UdW6f5F
Tzs_-C6XqRVJ-
TxJBckyBYGnEtkCT2W0IzfjxkE0_aem_eb3BMRC0o_MDsnZt9bO2qA#6

https://www.scribd.com/presentation/528348761/Module-2-Risk-and-Rewards-of-Going-
into-Business