MODULE 1: OVERVIEW OF
ENTREPRENEURSHIP
WHAT IS ENTREPRENEURSHIP?
It is a proactive process of developing a business venture
to make a profit.
The word “entrepreneur” has a French origin and was coined
from the word entre, which means “between” and prende,
which means “to take”
It involves…
Seeking opportunities for a market
Establishing and operating a business out of the
opportunity; and
Assessing risks and rewards through close monitoring of
the operations.
CORE COMPETENCIES IN
ENTREPRENEURSHIP
1. Economic and dynamic activity- Entrepreneurship is an economic
activity because it involves the creation and operation of an
enterprise with a view to creating value or wealth by ensuring
optimum utilization of limited resources.
2. Innovative- Entrepreneurs constantly look for new ideas, thus he
needs to be creative.
3. Profit Potential- meaning the entrepreneur can be compensated by
his profit coming from the operation.
4. Risk bearing –meaning the entrepreneur needs to gamble but wise
enough to offset the risk.
COMMON AND CORE COMPETENCIES IN
ENTREPRENEURSHIP
1. Decisive- an entrepreneur must be firm in making decisions.
2. Communicator- an entrepreneur must have a convincing power.
3. Leader-an entrepreneur an entrepreneur must have the charisma
to be obeyed by his employees
4. Opportunity seeker- an entrepreneur must have the ability to be
the first to see business chances.
5. Proactive- controlling a situation by making things to happen
or by preparing for possible future problems
6. Risk Taker- they have the courage to pursue what is their business
ideas.
7. Innovative- the entrepreneurs have big business ideas and they do
not stop improving and thinking of new worthwhile ideas for their
business.
8. Balanced- the mind of the entrepreneurs should have a balance
between analytical and the creative side
9. Networkers- they know the key people to connect.
10. Sociable- soft skills are one of the most important competencies
of entrepreneurs as these establish relationship with the most
important assets of the company – its people and its customers.
WHAT ARE THE SOCIAL AND ECONOMIC
BENEFITS OF ENTREPRENEURSHIP?
Entrepreneurship produces more jobs that equate to
an increase in national income.
Entrepreneurship amplifies economic activities of
different sectors of society.
Entrepreneurship introduces new and innovative
products and services.
Entrepreneurship improves people’s living standards.
Entrepreneurship disperses the economic power
and creates equality.
Entrepreneurship controls the local wealth and
balances regional development.
Entrepreneurship reduces social conflicts and
political unrest.
Entrepreneurship elicits economic independence
and capital formation.
FACTORS AFFECTING
ENTREPRENEURSHIP
1. Personality Factors which includes:
a. Initiative- which means doing things even before being told
b. Proactive-which means he can classify opportunities and seize it.
c. Problem Solver- which means he can retain good relations with
other people
d. Perseverance-meaning he will pursue things to get done
regardless of challenges
e. Persuasion- means that he can entice people to buy even if they
don’t.
f. A Planner- meaning he makes plan before doing things and do
not fail to monitor it.
g. Risk-taker which means that he is willing to gamble but he will
calculate it first.
FACTORS AFFECTING
ENTREPRENEURSHIP
2. Environmental Factors which include political, climate,
legal system, economic and social conditions and market
situations.
RELEVANCE OF ENTREPRENEURSHIP TO
AN ORGANIZATION
1. Development of Managerial capabilities- this means that one
of the benefits an entrepreneur gets is to develop his managerial
skills.
2. Creation of Organizations- which means that because of
entrepreneurships many organizations will exist.
3. Improving standard of living- this means that entrepreneurship
can lift up the economic status of an individual.
4. Means of economic development- this means that not only the
life of the entrepreneur is improved but also the society where
the business is located.
WHO IS AN ENTREPRENEUR?
- An entrepreneur is a unique individual
who has the innate ability and extraordinary
dedication to establish and manage a
business, acknowledging all the risks and
reaping its rewards.
ENTREPRENEURSHIP IS COMPOSED OF
VARYING DEGREES OR LEVELS OF
INTENSITY. ACCORDING TO ACTION
COACH, THERE ARE FIVE LEVELS OF
ENTREPRENEURIAL DEVELOPMENT
The Self-employed
The Manager
The Leader
The Investor
The True entrepreneur
THE SELF-EMPLOYED
-They are not comfortable with the routines
of a desk job. They do not want to conform
to a fixed working schedule. They will
eventually realize that a successful business
should work for them.
THE MANAGER
- In this level, entrepreneurs feel the
need to step up and ask some help from
the people around them. They delegate
and hire potential employees to do the
work
THE LEADER
- Entrepreneurship in this level already enjoy seeing their
people flourish, stepping up and producing great results
with minimal supervision. They already recognized key
leaders in their organization. In effect, these key leaders
also enjoy the entrepreneurs’ trust and are satisfied with
the outcome of their careers. Entrepreneurs at this stage
now focus on the big picture and strategic direction of
their business rather than in generating sales and
operating the business.
THE INVESTOR
- Investors look for more opportunities for
their business to grow. They may either
purchase one or two businesses that can
potentially add value to the company, or sell
their established business as a franchise to
potential entrepreneurs.
THE TRUE ENTREPRENEUR
- True entrepreneurs, based on their experience, now
aim for quality and excellence in their work. They
have fully learned, and continue to practice, a four-
step process of thinking-idealization, visualization,
verbalization, and materialization. True
entrepreneurs have an income that keeps on
multiplying even if they do not put much effort.
ENTREPRENEURS’ FOUR-STEP PROCESS
OF THINKING
Idealization- entrepreneurs dream enormously and desire
to build an ideal environment.
Visualization- entrepreneurs start to create plans to make
the dream a reality.
Verbalization- involves sharing of ideas with other
people, knowing that their vision is already occurring.
Materialization- happens when the vision becomes a
reality.
TERMS FOR AN ENTREPRENEURS’
FIELD OF EXPERTISE
Technopreneur- entrepreneur who puts technology at the
core of his or her business model.
Social entrepreneur- takes advantage of the country’s
social problems and turn them to profitable institutions
with the intention of helping the disadvantaged
community rather than making a profit.
Intrapreneur- is an entrepreneur in a large
company or corporation who is tasked to think,
establish, and run a new big idea or project.
Intrapreneurs are usually the product managers or
the business development managers of a company.
Extrapreneur- entrepreneur who hops from one
company to another to act as the innovation
champion, providing creative and efficient
solutions.
CORE TRAITS THAT ENTREPRENEURS SHOULD
DEVELOP IN MANAGING AND RUNNING THE
BUSINESS
Leaders
Communicators
Specialist
Problem solvers
CAREER OPPORTUNITIES OF
ENTREPRENEURSHIP
1. Business Consultant- with the expertise of the entrepreneur he can be a
very good source of advices to other entrepreneurs and would be business
man.
2. Teacher- a graduate of an entrepreneurship can be use his knowledge in
teaching
3. Researcher- the entrepreneur can be employed as researcher by an
enterprise.
4. Sales- the entrepreneurship graduate can apply as salesman
5. Business Reporter- the entrepreneur being expert in the field, he can be
employed as business reporter.
TYPES OF ENTREPRENEURS
1. Innovative entrepreneurs- have the ability to think newer,
better and more economical ideas.
2. Imitating- these are people who follow the path show by
innovative entrepreneurs
3. Fabian Entrepreneurs- are skeptical about changes to be
made in the organization.
4. Drone entrepreneurs- are persons who lives on the labor of
other
5. Social entrepreneur- are people who drive social innovation
and transformation in various fields including education,
health, human rights and many others
ENTREPRENEURSHIP OR
EMPLOYMENT?
Important career Entrepreneur Employee
factors
1. Income -income generated -income generated
passively even when the actively (on working
entrepreneur is resting hours only) no work =
-opportunity income no pay
unlimited, depending on -income usually fixed
the success of the per month and increases
business every year depending on
-income only earned the employer and the
when the business is employee’s performance
successful -income earned whether
the business is
successful or not
2. Hiring and Firing, -provides jobs; is the -seeks for a job; is the
Organizational setup, owner of the business one applying for a job
and major key result and conducts the and is interviewed by
areas talents selection the company’s hiring
-fully responsible for officers
serving customers, -has the goal of
making the business satisfying only the
profitable/sustainable, employer or the direct
and providing supervisor
employee satisfaction -fully dependent on the
-has the power to employer’s
disengage performance; is at risk
nonperforming of losing his job if the
employees applying the company does not
due process policy of perform well; may find
disengaging personnel it difficult to just leave
their below par
employer if this is their
only source of income
-can venture into -can only work for the
expansion of business current employer
such as franchising and exclusively
buying other similar
businesses
3. Daily tasks -perform all necessary -has routine tasks and
variable tasks to works on regular or
establish and manage a normal hours
start-up business, which -follows policies,
usually takes most of the procedures, and
time; spend more hours memoranda from the
on work than a regular employer
employee and
sometimes gets no sleep
-prepares policies,
procedures, and
memoranda for the
business
4. Leisure time and -has a flexible schedule -has a limited number
vacations and can take unlimited of vacation days
number of vacation imposed by the
days employer
5. Taxation -taxed on the net -taxed on the gross
income; can claim income; cannot use
taxable income expenses incurred
deductions for allowable related to the job such as
expenses incurred by the food and transportation
business expenses to claim for
deductions from taxable
income
6. Comfort level at -is comfortable in -may be comfortable
work doing multiple and with routines and
challenging tasks and minimal risks; may
takes accountability also be comfortable in
with the risks and working for the
profits of the business; company itself
does not want to be
confined in a box;
thinks outside the box
or sometimes thinks
there is no box
CAREERS IN ENTREPRENEURSHIP
(LIST OF THE MOST COMMON SMALL BUSINESS IN
THE PHILIPPINES)
-Sari sari store -Hair styling and make up
-Rice retailing -Spa, gym, and nail care
-Food cart business -Video and photography
-Printing business -Tutorial business
-Buy and sell business-Baking business
-Street food business -Flea market or tiangge
-Online selling business -Direct selling
-Cellphone loading business
-Laundry and dry cleaning business
-Website development and design/blogging
-Car wash and car care
-Bar, café, and restaurant
-Water station and LPG station
ENTREPRENEUR PHILIPPINES’ FRANCHISE OR
START-UP BUSINESS OPTIONS IN THE PHILIPPINES
-Bakeries, bakeshops, and bread products
-Bars, cafes, and coffee shops
-Beverage and confectionary
-Car care
-Clothing and accessories
-Convenience stores
-Drug stores and pharmacies
-Fastfood establishments and restaurants
-Food and snack carts
-Gas/petroleum products and water stations
-General merchandise and retail
-Health and wellness (salon, massage, spa, and gym)
-Schools
-Services
