Entrep

Let’s say you won the grand prize in a lottery and you were given the chance to support
your
relatives, friends, and your community. Will you just give out some of your winnings to them? Or will
you put up a foundation or charitable work? What about a business? What benefits will they get from the
portion you give? The foundation? The business? What benefits will you derive from those options?
Weighing the benefits will suggest the investing the money in a business will bring more benefits to the
recipients, your community and most especially yourself. Let us find out why.
Among all economic resources (land, labor, capital, entrepreneur ability), entrepreneurship ranks
as the most significant one. The economic performance of a country is dependent on how quick and
efficient entrepreneurs are in discovering new ideas and channeling economic resources towards
profitable business ventures. The economic powers of United States of America and China sprang from
the entrepreneurial activities of their people.
Entrepreneurs are not only ones who benefits when they start businesses. Although job creation is
one of the most important contributions they make to society, it’s certainly not the only one.
Entrepreneurs can play important roles in their communities, particularly when they turn their energies to
philanthropy and innovation.

Help Wanted
Entrepreneurs not only create employments for themselves but for other people in their
communities. Although new business owners might start their businesses with only one or two
employees, those number increase as the company grows. The cumulative effect of multiple small
business start-ups creates a significant impact when it comes to job creation. In the Philippines, that
impact is evident when you look at employment statistics. It is viewed as important to empowering the
poor, enhancing production and as an impetus to innovation.

Support for the Economy
Entrepreneurs not only create jobs in their own companies but also contribute to improving their
local economies. When people are employed, they spend money in local businesses, such as clothing
stores and restaurants, which keeps those businesses flourishing. The new company establishes
relationships with suppliers, vendors and other companies and spends money purchasing good and
services from those companies. The existence of a new company can encourage others to open businesses
in the same area, which in turns spurs new job creation. The 1987 Philippine Constitution recognizes
entrepreneurship as an engine of economic growth. It only shown that it has a great support in sustaining
and improving the quality of life of every Filipinos.

Giving back
Entrepreneurs contribute to their communities with their charitable contributions. In some cases,
entrepreneurs start businesses that focus equally on profit and charitable goals. For example, a financial
company might start a program that provides loans to low-income female business owners. Some
entrepreneurs do not restrict their charitable activities to providing money but work differently with
organizations.

It Is Brand New
The freedom from corporate rules and regulations can free entrepreneurs to create new products
that benefit society. The telephone, invented by Thomas Edison, profoundly changed people’s lives when
it was invented. The computers many of us cannot live without would not exist if not for entrepreneurs
like Bill Gates and Steve Jobs. Although entrepreneurs can succeed with tried-and-true business models,
it is often innovation that sets them apart from competitors whose employees might not have the same
passion for finding new solutions to problems.

The following describes the significant role entrepreneurs play in our economy:
As an Agent of Change

It is said that although all entrepreneurs are businessmen, not all businessmen
may be considered entrepreneurs even if they performed the same tasks in their business
endeavors. Why is that so? Do you want to be an entrepreneur or a businessman? What do
you think is the difference of one from the other?
An entrepreneur is an individual who can create a new product and sell them in
the market. He/she is someone who introduces innovation on existing product, service,
and/or instigate changes in the production process. Creating new solution to an old problem
or using resources in unusual ways can be risky, yet entrepreneurs do that anyway.
Creativity and innovation differentiate an entrepreneur from an ordinary
businessman. Many businessmen merely imitate enterprises that are currently amassing
profit due to fads or trend only to find out in the end, that their profits are eliminated by the
presence of many other competitors who did the same.

(Photo @ Pineda, Ariel D., (2019), Entrepreneurship Fundamentals, MINDSHAPERS CO., INC.)
Figure 1.2 Role of Entrepreneur

2. As a Resource-User or Employer
As entrepreneur combines and employs different types of resources to produce a new
good or service. By putting up your own business you do not only realize profit, but you also
help prevent unemployment by creating jobs and generating income for other people. Locally
grown and indigenous raw materials are utilized to their fullest because local entrepreneurs have
found ways to make them useful. Water lilies, for instance, are now used to make bags, slippers
among many other things.

3. As a Driving Force for Economic Growth and Development

The standard living in some countries has become better because of the contributions of the
entrepreneurs in their economy. As more and more goods and services are produced, more income is
generated, thus the Gross Domestic Product of the country continues to grow.
A high-income level in the country enables the government to realize higher tax revenue which
can be spent for better roads and highways, transportation and communication facilities, and other social
services.

o Why is the study of entrepreneurship essential for a 21 st century student like you?
o Give your very own definition of entrepreneurship based on those given above. Explain your
answer.

What is an Entrepreneur?
An entrepreneur is anybody who holds managerial and decision-making abilities, skills, and
capabilities of running a business or an enterprise. These skills, whether managerial or decision making
could be developed and improved through experience, exposure, education, and training. As a manager of
an enterprise, you should possess the skills of being specific, concise, and well-planned. In addition, an
entrepreneur is a risk taker who tends to behave in a way that can potentially cause physical harm or
financial loss, but might also present an opportunity for a rewarding outcome.
Read more: http://www.businessdictionary.com/definition/risk-taker.html
Can you be an entrepreneur?

Yes, you can be an entrepreneur, but not everybody is going to have the same level of
accomplishment and victory. Entrepreneurship takes many of experience, determination and sometimes,
education as stated above. There are no definite requirement to becoming an entrepreneur, though, there
are many inspiring stories of successful businessmen nowadays in the Philippines that started as an
entrepreneur and became very famous such as Tony Tan Caktiong of Jollibee Corporation, Gokongwei
family, etc. These stories will help and could be your guide to become successful entrepreneur.

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Let’s say you won the grand prize in a lottery and you were given the chance to support

3. As a Driving Force for Economic Growth and Development

Can you be an entrepreneur?

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