12

Entrepreneurship
Quarter 1 – Module 1:
Understanding
Entrepreneurship
LEARNING COMPETENCY

Discuss the relevance of the

course
 Supplementary Learning Module for Senior High School Learners

Lesson
Defining Key Concepts
1.1
BEGIN!

What comes into your mind when you hear the words entrepreneur and
entrepreneurship?

You may initially refer to an entrepreneur as a businessperson and

entrepreneurship as the business. Others may specify the former to be the ordinary
businessperson and the latter to be a small-to-medium-scale business. Some may
even consider that there is no difference between the two terms.

In this module, you will learn about operational definition of the terms
“entrepreneur” and “entrepreneurship” and makes a clear distinction between them.
Do you imagine yourself becoming an entrepreneur and managing your own business
in the future? Are you up for it? Then, be ready to learn and accomplish the tasks
ahead.
YOUR TARGETS
At the end of the module, you should be able to:

Define entrepreneur and entrepreneurship

Differentiate small business and ordinary small business

TRY THIS!

Instructions: Identify what is asked or described in each item. Encircle the letter of
the correct answer.

1. This refers to a person who strongly advocates and correctly practices the
concepts and principles of entrepreneurship?
A. Entrepreneur C. Businessperson
B. Manager D. Intrapreneur
2. This is a term that is used to call this self-own business venture that is being
operated and managed by a person who strongly advocates and correctly
practices the concepts and principles of entrepreneurship.
A. Small Business C. Ordinary Small Business
B. Enterprise D. Entrepreneur
3. It is an art of observing correct practices in managing and operating a self-
owned wealth creating venture by providing goods and services to customers.
 A. Entrepreneur C. Small Business
B. Entrepreneurship D. Ordinary Small Business
4. It refers to an enterprise that correctly adopts and practice the principles of
entrepreneurship.
A. Entrepreneur C. Small Business
B. Entrepreneurship D. Ordinary Small Business
5. What do you call the type of business that owned by one person with a limited
workforce of not more than 20 persons without practicing the concepts of
entrepreneurship?
A. Entrepreneur C. Small Business
B. Entrepreneurship D. Ordinary Small Business

DO THIS!

Instructions: Examine the two pictures below. Compare the two pictures and answer
the questions that follow.

EXPLORE!
1. What differences can you see from the two pictures?
______________________________________________________________
2. Who do you think is an entrepreneur from the picture? A businessman? Explain.
______________________________________________________________

KEEP THIS IN MIND…

There is no universally accepted definition of entrepreneurship, even among

universities and colleges offering entrepreneurship program in the Philippines and
abroad. Some of the reasons for this are as follows:
1. Different views and theories have been developed in the field of
entrepreneurship.
 2. The scholars who provided the definition for entrepreneurship are largely
influenced by their own individual personal beliefs.
3. The entrepreneurial models introduced by scholars are predominantly
influenced by the prevailing economic situations during specific periods in
history.
4. The frameworks and methodologies of researches on entrepreneurship
are highly dependent on the theories and the contexts of the research
endeavors.

Therefore, to avoid confusion, this lesson provides an operational definition

of entrepreneurship based on the ultimate objective of the concept and the expected
direction and demand in the future.

Entrepreneur

The term “entrepreneur” originates from

the French word entreprendre which means “to
undertake.” It connotes a business paradigm which
signifies the start of a new business undertaking.

The American Heritage Desk Dictionary –

defines an entrepreneur as a person who
organizes, operates, and assumes the risk
of business ventures. Source: https://fusionworkplaces.com

In this module, an entrepreneur is defined as a person who strongly

advocates and correctly practices the concepts and principles of entrepreneur-

ship in operating and managing the self-owned business venture. This venture is also
called enterprise.

Take note that…

The operational definition of an entrepreneur puts emphasis on the concepts of

advocacy and correct practices. These concepts primarily differentiate the owner of an
ordinary small business and the entrepreneur.

Entrepreneurship

The term “entrepreneurship” comes

from the word entrepreneur. It refers to a
particular field of practice or process, as
compared to an entrepreneur which is a
person practicing entrepreneurship.
This module operationally defines
entrepreneurship as the art of observing
correct practices in managing and
operating a self-owned wealth- Source :https://ecorner.stanford.edu
creating business enterprise by providing goods and services that are valuable to the
customers.
Small Business

Refers to a business or enterprise that correctly adopts and practices the

principles of entrepreneurship.
Owned by one person with a limited workforce of not more than 20 persons.
Includes small and medium enterprises (SMEs) that have been promoted by
both government and non-governmental organizations (NGOs) in their desire
to improve the lives of the Filipino people through entrepreneurship.

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.

Examples:

Sources: https://google.com

In the Philippines, small businesses, whether ordinary or not, are flourishing

and sprouting like mushrooms. They can be found almost anywhere and everywhere
– along city streets, municipal roads and national roads, and in public markets,
hospitals, schools, and amusement places.

Why does this happen in the Philippines? The reason could be that many
Filipino families resort to opening ordinary small businesses since it is the easiest and
most practical way to augment their income. A small amount of money can be used to
start up a simple sari-sari store business, or a small stall or pushcart in which food and
other staff can be sold in quantities. However, the mere opening of a business
enterprise is not entrepreneurship and the person owning and running its day-to-day
operations is not an entrepreneur but rather a businessperson.

APPLY WHAT YOU HAVE LEARNED

Instructions: Pretend that you will be putting up a small business. Discuss your
answers in each box below.
1. Tell what kind of business venture you intend to open and why you have
chosen it. (You may draw illustrations of your small business)
 2. Explain briefly how you can be an entrepreneur and not merely a
businessperson.

REFLECT!

Congratulations on finishing the supplementary module for lesson one! I hope

you will still do the same in the next lessons.

This time, write your final insights of the lesson: Defining Key Concepts by
completing the following sentence prompts.

I have learned that …

__________________________________________.
I wish to ask my teacher about …
__________________________________________
__________________________________________.

LEARN MORE!
1. Watch the video in the website:
https://www.youtube.com/watch?v=aozlwC3XwfY
2. Show your learnings from the video through differentiating an entrepreneur from
an ordinary businessperson using an infographic.

ASSESS WHAT YOU HAVE LEARNED

I. Instructions: Write True if the statement is correct. Otherwise write False
and state your reason briefly.

__________________1. Knowing all the entrepreneurial concepts will assure a

person of becoming a successful entrepreneur.

__________________2. Entrepreneurship originates from the Greek word

entreprendre which means to undertake a business.

__________________3. The distinguishing mark that differentiates an

entrepreneur from an owner of an ordinary small business is the commitment of
the entrepreneur to entrepreneurial concepts and principles.

__________________4. All businesspeople are entrepreneurs.

__________________5. Most owners of ordinary small businesses open their
businesses because of the profitability aspect of the operations.

II. Instructions: Identify what is asked or described in each item. Encircle the
letter of the correct answer.
1. Nicole’s mother plans to start a small sari-sari store outside their house to
generate income for the family. Nicole’s mother is an example of __________.
A. Entrepreneur C. Manager
B. Businessperson D. Owner
2. Winrey advocates and practices the concepts and principles of
entrepreneurship. He operates and manage his business through observing
correct practices. Winrey is an example of ____________.
A. Entrepreneur C. Manager
B. Businessperson D. Owner
3. It 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.
A. Small Business C. Large Business
B. Medium Business D. Ordinary Small Business
4. It refers to a business or enterprise that correctly adopts and practices the
principles of entrepreneurship.
A. Small Business C. Large Business
B. Medium Business D. Ordinary Small Business
5. Claire focuses on creative marketing, new ideas, building a team, and
connecting to people when it comes to business. On the other hand, Hannah
focuses on numbers, profit, cashflow, deliverables and follows the trend when
it comes to business. Which of the terms below correctly describes Claire?
A. Entrepreneur C. Manager
B. Businessperson D. Owner

III. Answer the following questions in a paragraph form.

1. Discuss the need to have a correct understanding of the concept of
entrepreneurship. What advantages will it provide to a person who is interested
in becoming a successful entrepreneur?
2. Enumerate the reasons why there is no universally accepted definition of the
term entrepreneurship.
 Supplementary Learning Module for Senior High School Learners

Lesson
Features and Theories of Entrepreneurship
1.2
BEGIN!

The 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.

On the other hand, theory is a generalization that explains a set of facts

or phenomena. It is not an absolute truth. Although, it can be supported by another
observation or proven to be otherwise.

In this module, you will learn about the salient features of

entrepreneurship. In addition to that, you will also learn about the theories on
entrepreneurship and its importance. Are you now up to a new learning journey?

YOUR TARGETS
At the end of the module, you should be able to:

Enumerate the features of entrepreneurship

Explain the features of entrepreneurship
Identify some theories on entrepreneurship
Cite the importance of the theories on entrepreneurship

TRY THIS!

Instructions: Identify what is asked or described in each item. Encircle the letter of
the correct answer.

1. Which of the following is NOT a feature of entrepreneurship?

A. Wealth-creating venture
B. Risk-taking venture
C. Income-generating venture
D. Art of correct practices
2. It differentiates an entrepreneur from an ordinary small businessperson through
transforming feasible new ideas into an entrepreneurial venture.
A. Creativity C. Profit
B. Wealth D. Risk
 3. It is created when the value of the business has increased abundantly and the
life of its owner has improved considerably.
A. Creativity C. Profit
B. Wealth D. Risk
4. It is an important principle in management. It refers to the process of setting
the goals of the business.
A. Planning C. Creating
B. Managing D. Designing
5. It is a theory of entrepreneurship that regards economic development as the
product of structural change.
A. Keynesian Theory C. Alfred Marshal Theory
B. Weber’s Sociological Theory D. Innovation Theory

DO THIS!

Instructions: Recall an invention that you think has significantly changed your
lifestyle.

EXPLORE!

Evaluate your invention how creative and valuable it is to you. (You may show
your invention through drawings or illustrations.)

KEEP THIS IN MIND…

FEATURES OF ENTREPRENEURSHIP

From its operational definition, entrepreneurship consists of five features.

 Providing values
to customers

Opening and
Wealth-creating managing self-
venture owned business
Entrepreneurship

Art of correct Risk-taking

practices venture

Figure 1.2.1 Features of Entrepreneurship

A. ENTREPRENEURSHIP AS AN ART OF CORRECT PRACTICES

Entrepreneurship is an art and 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. Entrepreneurship, therefore, is not static or stagnant. It
continuously grows, develops, improves, and expands; the change does not stop.
The development of entrepreneurship through the years is a proof that it
is an art that continuously evolves and responds to the changing needs of the people.
Therefore, Entrepreneurship as an art is:
Dynamic – by the moment the
economic activity changes, the
political, social, and entrepreneurial
activities will eventually change.
Related to the correct
practices or ways of carrying out
entrepreneurial activities
Closely related to creativity –
it results in new ideas which are the
backbone of entrepreneurship.
Source: https://bangkok.unesco.org/
Entrepreneurs keep on searching for something new. They find ways to transform new
ideas into entrepreneurial opportunities. Creativity should be applied to
entrepreneurial undertakings by regularly evaluating the market and the environment
and responding to the changes in them.
Remember that…

Creativity also differentiates an entrepreneur from an ordinary small businessperson. An

entrepreneur transform feasible new ideas into an entrepreneurial venture, while an ordinary small
business person only builds upon existing ideas to gain immediate earnings from his/her business.
 APPLY WHAT YOU HAVE LEARNED

I. Instructions: Ask yourself the following questions and write your answers
inside the box.

1. Is creativity present in the operation of ordinary small businesses along the

streets and highways and in your neighborhood? Why do you say so?

2. Will you consider the daily business practices of the small business owner within
the concept of entrepreneurship? Why?

KEEP THIS IN MIND…

B. ENTREPRENEURSHIP IS A WEALTH-CREATING VENTURE

This feature sounds simple, but this has been most misconstrued
because of the word wealth. In most instances, ordinary small businesspeople equate
wealth with the term profit. In the parlance of accounting, profit represents the excess
income or revenue from the cost and expenses.
Entrepreneurship,
however, is operating within the
concept of wealth creation rather
than profit generation. According
to Random House Webster’s
Dictionary, wealth is defined as the
abundance of money, property, or
possession.
Opening a business
with the working philosphy that it
will provide an income is common
among ordinary businesspeople. Source: https://www.iese.edu/
It should not be the approach and way of an entrepreneur. An entrepreneur has a
different perception and outlook from an ordinary businessperson. An entrepreneur
looks at his/her business as a wealth-creating venture, while an ordinary
businessperson regards his/her small business basically as a source of income.
Wealth is created when the benefits derived by the owner in providing
goods and services to the customers are abundant enough to cover the costs incurred
by the business. At the same time, it provides personal benefits to the owner, which in
turn improve his/her life. Otherwise, the small business is not a wealth-creating
venture. The wealth created by the small business must improve the life of the owner
and cascade to the development of the local economy and eventually of the whole
country.

Take note…

Wealth is created when the value of the business has increased abundantly and the life
of its owner has improved considerably. If not, then the business is being managed and operated
not within the framework of entrepreneurship.

APPLY WHAT YOU HAVE LEARNED

II. Instructions: Think of a small business you intend to start and ask yourself
the following questions below. Write your thoughts about the questions
inside the box.

1. Is your small business a wealth-creating venture or an income-generating

enterprise? Why do you say so?

2. Does your business help improve your life? How?

KEEP THIS IN MIND…

C. ENTREPRENEURSHIP PROVIDES VALUABLE GOODS AND SERVICES

Source: http://christophersrevision.weebly.com/
Entrepreneurship creates economic wealth by providing goods and
services to the consumers. These goods and services must have a value in order to
create wealth. Otherwise, they become wasted.
 Valuable goods and services highly satisfy the target buyers in terms of
quality and price. The entrepreneur convinces the consumers that they gain more
benefits than what they pay for the goods and services.
The entrepreneur defines value from the perspective of the buyers
and not only from his/her own because what is valuable to the entrepreneur may
not be of any value to the consumers. Value, therefore, is subjective. Not every person
considers the same things as valuable.

Assume that you are

Will adding two side adding two side pockets without
pockets to the ladies’ bag that one knowing whether this will make
intends to produce from local raw your product more valuable or
materials be valuable to the target not.
users?
By adding two side
If your answer is YES, then the pockets to your product,
product can start. If your answer is additional materials and labor
NO, it is not advisable to add the expenses will be incurred. The
two side pockets. cost of producing the product,
therefore, will increase.

‘
Remember that…

As a future entrepreneur, it is a must to ascertain first whether or not the additional value
that will be placed on your product is valuable to the target consumers. It should be always
remembered that adding another value to a product or service will surely increase the cost of the
product or service.

APPLY WHAT YOU HAVE LEARNED

III. Instructions: In connection to your answers in the previous APPLY WHAT

YOU HAVE LEARNED section, ask yourself the following questions below.
Write your thoughts about the questions inside the box.

1. Is your product or service valuable? Why do you say so?

2. From whose perspective is your product or service valuable?

 3. How will you make your product or service valuable to your target market?

KEEP THIS IN MIND…

D. ENTREPRENEURSHIP ENTAILS OPENING AND MANAGING THE SELF-

OWNED ENTERPRISE

This feature highlights two important elements: the concept of opening

a self-owned enterprise and the concept of managing it.
The entrepreneur opens his/her own business under the principle of
entrepreneurship. It must be self-owned in order to qualify as an entrepreneurial
endeavor. A business is considered self-owned when the person managing its daily
activities is also its 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.
The issue in a self-
owned business is very clear
and simple: it is plainly about
ownership. It is neither about
the amount of invested capital
nor about the nature of the
business enterprise. Therefore,
businesses falling under the
concept of entrepreneurial
endeavor may range from a
small bakery or restaurant in
the neighborhood
Source: https://issh.al/ to a multimillion construction
company operating throughout the Philippines, provided that the business is managed
by the owner himself/herself.
Entrepreneurship is not about the size of the business but rather about
its sole ownership. In other words, entrepreneurship includes small, medium, and
multimillion businesses that are managed by their respective owners.
In entrepreneurship, the owner of a business must also be the
manager of the daily operations of the entrepreneurial venture. A business,
whether big or small, that is managed by a person other than its owner is not within
the concept of entrepreneurship. In such a case, the owner cannot be considered as
an entrepreneur but as an ordinary businessperson. Similarly, the person handling the
activities of the venture is not an entrepreneur but a manager.
 Planning is an important principle in
management. It refers to the process of setting the
Where will my
goals of the business. The entrepreneur, being the
entrepreneurial
owner and manager, must clearly set the goals of venture be in five
his/her business. In other words, he/she should or ten years after?
establish a clear direction of his/her entrepreneurial
venture.

Bear in mind that…

As a future entrepreneur, you have

to constantly plan for the course of your
entrepreneurial endeavor. Planning does not
cost anything but the benefit you will gain
from exercising it can be rewarding.

APPLY WHAT YOU HAVE LEARNED

IV. Instructions: Ask the following question to your self. Write your thoughts
inside the box.

1. Do you know someone who owns a small business?

2. Does he/she personally manage his/her own business? How?

3. Do you think he/she is an entrepreneur or an ordinary small businessperson?

Why do you say so?
 KEEP THIS IN MIND…

E. ENTREPRENEURSHIP IS A RISK-TAKING VENTURE

Source: https://vemagnet.com/
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.
However, closing the business means giving up becoming a successful entrepreneur.
Hence, closing the business is not the ultimate answer in handling its inherent risk.
The risk in entrepreneurship is called a business risk.
The approach in handling business risks differentiates an entrepreneur
from an ordinary businessperson. Usually, an ordinary businessperson does not
understand the nature of business risk which in one way or another may lead to the
failure of his/her business. He/She shuns or avoids it which indicates that he/she only
favors operating under favourable condition.
How can one One definitely cannot
avoid something that is avoid something that is
inherent in oneself? already a part of his/her being.
How can a business Wherever one goes, he/she
avoid something that is brings it along. Wherever the
intrinsic in its process? business goes, there will
always be business risks.

Take note…

An entrepreneur should face business risks intelligently. He/She cannot eliminate

something ingrained in entrepreneurship. Instead, he/she must find ways to minimize the effects
of the risk.
 APPLY WHAT YOU HAVE LEARNED

V. Instructions: Ask the following question to your self. Write your thoughts inside the
box.

1. Are you a risk-taker or not? Why do you say so?

2. How do you face or avoid risks?

3. What business risks do you foresee in your future entrepreneurial venture?

KEEP THIS IN MIND…

THEORIES ON ENTREPRENEURSHIP

A theory is a generalization that explains a set of facts or phenomena. It is not

an absolute truth. It can be supported by another observation or proven to be
otherwise.

Innovation
Kirzner's
Learning- Keynesian
alertness

Leibenstein
's Gap-
Alfred
Theories
filling Marshall

Kaldor's Risk and

Technologic Uncertaint
al y-bearing
Weber's
Sociologic
al

Figure 1.2.3. Theories on Entrepreneurship

 1. INNOVATION THEORY

The innovation theory on entrepreneurship was contributed by Joseph

Schumpter, an Austrian economist and political scientist. The innovation theory
regards economic development as the product of structural change or innovation. This
theory considers innovation as the primary factor affecting development.

2. KEYNESIAN THEORY

The Keynesian theory on entrepreneurship was developed by John Maynard

Keynes, a British economist. The theory put so much emphasis on the role of the
government in entrepreneurial and economic development, most especially when the
economy was experiencing depression.

3. ALFRED MARSHALL THEORY

The entrepreneurship theory of Alfred Marshall, an English economist, was

introduced in his book, Principles of Economics. Marshall regarded the entrepreneurs
as the prime movers in the organization. The theory generalizes that the organization
plays the most significant role among the different factors of production.

4. RISK AND UNCERTAINTY-BEARING THEORY

Frank Hyneman Knight, an American economist, conceptualized the risk and

uncertainty-bearing theory of entrepreneurship in his book, Risk, Uncertainty and
Profit. By adopting some concepts of the early economists, Knight viewed an
entrepreneur as an agent of the production process where he/she connects the
producers and the consumers.

5. WEBER’S SOCIOLOGICAL THEORY

In this theory, Max Weber stressed that social cultures are the primary driving
elements of entrepreneurship. The entrepreneur is expected to perform the role of a
good constituent by executing his/her entrepreneurial activities in line with good
customs and traditions, religious beliefs, and morals.

6. KALDOR’S TECHNOLOGICAL THEORY

The technological theory was developed by Nicholas Kaldor who considered

modern technology as an essential factor in production. This theory gives importance
to the advancement of technology as an element of production.

7. LEIBENSTEIN’S GAP-FILLING THEORY

In this theory on entrepreneurship, Henry Leibenstein proposed that the primary

role of entrepreneurship in any economic activity is to fill the existing gap.
Entrepreneurship is responsible for recognizing trends in the market. The entrepreneur
is expected to possess abilities that will connect the different markets.
 8. KIRZNER’S LEARNING-ALERTNESS THEORY

Israel Kirzner was the main proponent of this theory. He pointed out
spontaneous learning and alertness as the two major attributes of entrepreneurship in
any given economy. The entrepreneur must be alert in recognizing entrepreneurial
opportunities and the ignorance of consumers as well.

APPLY WHAT YOU HAVE LEARNED

VI. Instructions: Ask the following question to your self. Write your thoughts inside
the box.

1. Which of these theories do you consider fitting to your dream of becoming a

successful entrepreneur?

REFLECT!

Congratulations on finishing the supplementary module for lesson two! I hope

you will still do the same in the next lessons.

This time, write your final insights of the lesson: Features and Theories of
Entrepreneurship by completing the following sentence prompts.

I have learned that

___________________________________________
_________________________________________

I wish to ask my teacher about

__________________________________________
__________________________________________

LEARN MORE!

1. Pick one small business existing in your neighborhood. Observe the day-to-day
activities of its owner. Evaluate if the business is a wealth-creating venture.
2. Make your own theory on entrepreneurship for the business that you observed,
give your theory a name and explain how it applies to the said business.
 ASSESS WHAT YOU HAVE LEARNED

I. Instructions: Write True if the statement is correct. Otherwise write False

and state your reason briefly.

__________________1. The entrepreneur seeks a wealth-creating venture rather

than a profit-generating venture.

__________________2. Entrepreneurs find ways to avoid business risk.

__________________3. The primary objective of any business endeavor is profit.

__________________4. In sociological theory, Weber emphasizes that the social

cultures are the primary elements of entrepreneurship.

__________________5. The entrepreneurship theory of Alfred Marshall suggests

that the active participation of the entrepreneur in the organization will affect the
economy negatively.

II. Instructions: Identify what is asked or described in each item. Encircle the
letter of the correct answer.
1. It is an entrepreneurial undertaking wherein wealth is created and where
resources are utilized fully to maximize the investment of the entrepreneur.
A. Wealth-creating venture C. Art of correct practices
B. Risk-taking venture D. Providing values to customers
2. Businesses that are being managed by others for the benefit of the owners are
operating under the concept of _____________.
A. Entrepreneurship C. Intrapreneurship
B. Business Management D. Marketing
3. This is a feature of entrepreneurship that is inherent in an entrepreneurial
venture. It cannot be detached from any entrepreneurial venture and the only
way to remove it is to close the venture.
A. Wealth B. Risk C. Value D. Art
4. This theory put so much emphasis on the role of the government in
entrepreneurial and economic development, most especially when the
economy was experiencing depression.
A. Innovation Theory C. Alfred Marshall Theory
B. Keynesian Theory D. Kaldor’s Technological Theory
5. This theory gives importance to the advancement of technology as an element
of production.
A. Innovation Theory C. Alfred Marshall Theory
B. Keynesian Theory D. Kaldor’s Technological Theor
 Supplementary Learning Module for Senior High School Learners
Lesson
Entrepreneurship and Ordinary Small Business Activity
1.3
BEGIN!

Entrepreneurship is different from the activities of ordinary small

businesses. This does not mean, however, that entrepreneurship does not connote
small business. It does because entrepreneurship covers small- and medium-scale
businesses. The distinction lies in the descriptive word “ordinary”.

In this module, you will learn about the differences between

entrepreneurship and the activities of ordinary small businesses. Knowing them will
help you assess yourself if you are an entrepreneur or a mere owner of ordinary small
business. Are you ready to take up another fun learning journey?

YOUR TARGETS

At the end of this module, you should be able to:

Distinguish between entrepreneurship and ordinary small business activity

Determine the importance of knowing the distinction

TRY THIS!

Instructions: Identify what is asked or described in each item. Encircle the letter of
the correct answer.

1. Joy’s primary goal is making the business as a source of livelihood. What type
of person is joy?
A. Manager C. Businessperson
B. Entrepreneur D. Intrapreneur
2. In connection to number one question, what area of difference is being
described?
A. Motive in opening a business
B. Perception of risk in the business
C. Reactions to changes in the environment
D. View on competition
3. Cyrus explores ways to generate the much-needed funds from both internal
and external sources. What area of difference did Cyrus manifest?
A. Horizon of business operation
 B. Sources of business funds
C. Vision for development and growth
D. View on competition
4. What type of person is Cyrus?
A. Manager C. Businessperson
B. Entrepreneur D. Intrapreneur
5. When a person remains passive and static to changes in business the
environment, he/she is a/an _____________.
A. Manager C. Businessperson
B. Entrepreneur D. Intrapreneur

DO THIS!

Instructions: Choose one small business in your neighborhood. Conduct an interview

of its owner. Elicit the primary reason why he/she opened the business.

Source: https://insights.dice.com /Source: https://www.vectorstock.com/

EXPLORE!

Determine if the owner manages the business as an entrepreneur or as an owner

of an ordinary small business. Explain.

KEEP THIS IN MIND…

Entrepreneurship and the activities of ordinary small businesses differ

in the following areas:
 Reactions to
Motive in opening a Perception of risk in
changes in the
business the business
environment

Vision for
Horizon of business
View on competition development and
operation
growth

Sources of
business funds

Figure 1.3.1. Difference of Entrepreneurship and Ordinary Small

Businesses

Areas Entrepreneurship Ordinary Small Businesses

applies entrepreneurial
concepts and principles
primary goal is making
aspires to become
the business a source
Motive in opening successful
of livelihood
a business on lookout for new and
operates with a basic
fresh ideas
motive of earning profit
marked by creativity and
innovation
business risk is a
deterrent to the
Perception of risk takes and faces the
operation of the
in the business business risk squarely
business and must be
avoided
reacts positively to the
changes in the
Reactions to remains passive and
environment
changes in the static to changes in
outline alternative courses
environment the environment
of action in anticipation of
the changes to happen
views competition as
competition is a sign of a an unhealthy element
View on
healthy economic in the business
competition
environment environment and tries
to avoid it
Vision for usually outlines the course
relies upon chance or
development and of his/her entrepreneurial
luck in maintaining the
growth venture
 status quo of his/her
business
thinks globally but acts
locally
centered only on the
primarily concerned with
Horizon of local environment
the major economic
business does not intend to
events not only in the local
operation participate in the
environment but also in
global environment
the global business
market
explores ways to generate limit the funding of
Sources of the much-needed funds his/her business
business funds from both internal and enterprise to personal
external resources resources

APPLY WHAT YOU HAVE LEARNED

I. Instructions: There are eight hidden words related to the lesson you just
learned in the box below. Find the hidden words horizontally, vertically or
diagonally and explain it on your own words on the box provided.
 II. Instructions: Answer the following questions honestly in relation to what
you understood in this lesson.
1. What small business would you engage in? ___________________________
______________________________________________________________
2. Why would you open your own small business? _______________________
______________________________________________________________
3. What possible changes may take place in the environment where your business
operates? ______________________________________________
______________________________________________________________
4. Would you consider them favorable or unfavorable to your business? Why?
______________________________________________________________
5. Would you expect risks in your business? Why? _______________________
______________________________________________________________
6. Would you have the necessary plan in case business risks arise? What would
be it? _________________________________________________________
7. What is your view about competition? _______________________________
______________________________________________________________
8. Toward what business horizon would you direct your business? ___________
______________________________________________________________
Why would you choose that business horizon? ________________________
______________________________________________________________
9. What will be the primary source of funds for your business? ______________
______________________________________________________________

REFLECT!

Congratulations on finishing the supplementary module for lesson three! I hope

you will still do the same in the next lessons.

This time, write your final insights of the lesson: Entrepreneurship and Ordinary
Small Business Activity by completing the following sentence prompts.

I have learned that

____________________________________________
________________________________________

I wish to ask my teacher about

__________________________________________
__________________________________________
 LEARN MORE!
1. Read more articles about some tips from successful entrepreneurs.
2. Show your learnings from the articles through writing an essay about it and
telling your personal experiences in selling that may succeed if you will just
follow the tips.

ASSESS WHAT YOU HAVE LEARNED

Instructions: Write True if the statement is correct. Otherwise write False and state
your reason briefly.

__________________1. An entrepreneur and an owner of an ordinary small

business are totally different from each other.

__________________2. The primary motive of an owner of an ordinary small

business in opening the business is the business opportunity provided by the
environment.

__________________3. An entrepreneur finds alternative ways to avoid business

risks.

__________________4. The owner of an ordinary small business considers

business risks inherent in the business venture.

__________________5. Changes in the external environment present business

opportunities based on the perception of an entrepreneur.

__________________6. The owner of an ordinary small business anticipates

possible changes in the external environment.

__________________7. Competition increases the creativity and innovative

characteristics of the owner of an ordinary small business.

__________________8. The perspective for development and growth is usually

manifested in the short-and-long term plans of entrepreneurs.

__________________9. A person who is an entrepreneur is also a

businessperson.

__________________10. In most instances, owners of ordinary small businesses

are hesitant to look for external sources of funds.
 BIBLIOGRAPHY

Aduana, Nick L. 2016. Entrepreneurship in Philippine Setting for Senior High

School. Quezon City: C&E Publishing, Inc.

Morato, Eduardo A. 2017. Entrepreneurship. Sampaloc, Manila: Rex Book Store,

Inc.

Peña, Mike. 2016. Entrepreneurship Can Be Learned. Retrieved from:

https://ecorner.stanford.edu/

Payal, Priyanshu. 2019. Being a self made Entrepreneurs. Retrieved from:

https://ishupayal538.blogspot.com/

Tiemeier, Jason M. 2017. On-Demand Meeting Rooms for Entrepreneurs, Small

Businesses and Remote Workers in Palm Desert, CA. Retrieved from:
https://fusionworkplaces.com/

Wiens, Mark. 2020. Filipino Street Food Guide – 21-Must-Eat Snacks in the
Philippines. Retrieved from: https://migrationology.com/

UNESCO. 2019. Leveraging Multi-Stakeholder Engagement to Nurture Future

Entrepreneurs. Retrieved from: https://bangkok.unesco.org/

Leichtenstein, Heinrich. 2014. 7 Principles for Strategic Wealth Creation. Retrieved

from: https://www.iese.edu/

Admin. 2017. Dynamics of Self-Employment in Albania. Retrieved from:

https://issh.al/en

Dovner, Eddie. 2018. The Importance of Risk for Entrepreneurs. Retrieved from:
https://vemagnet.com/

ChristophersRevision. Business Basics. Retrieved from:

http://christophersrevision.weebly.com/

Swanner, Nate. 2019. Your Make-or-Break Interview Moment: ‘Tell Me About

Yourself’. Retrieved from: https://insights.dice.com/

Sabelskaya. Artist. Retrieved from: https://www.vectorstock.com/

Woodhouse84. Business characters team working on creative idea vector image.

Retrieved from: https://www.vectorstock.com/

Makyzz. Retrieved from: https://www.freepik.com/

 Salesforce Canada. 2019. Sales Professionals, Have No Fear: Technology is Here
to Help, Not Replace You. Retrieved from: https://www.salesforce.com/

Arnold, Bruce Baer. 2019. The government is hyping digitalized services, but
ignoring a history of e-government failures. Retrieved from: https://techxplore.com/

Ugino, Michael. 2020. The Top Ecommerce Trends You Need to Know About for
2020. Retrieved from: https://www.sellbrite.com/

AwardStaffing. 2019. Why You Need to Have a Wide Range of Job Experience.
Retrieved from: https://www.awardstaffing.com/

Naulicreative. 2017. "opportunity seeker business illustration" Premium Vector.

Retrieved from: https://www.freepik.com/

DISCLAIMER

I do not own or license any copyright in the texts, images, photographs,

graphics, and other content provided in this module. This module is solely
for non-commercial, informational, and educational purposes. There is no
intention on my part to claim ownership as to the contents or make profit
out of this module.

Prepared by: Mary Ann S. Dapiton

Special Science Teacher I (SHS)
Mandaue City Comprehensive National High School