EMELANE ROSE A.

GALVAN

Module 1 2. OPPORTUNITY SEEKING AND

EXPLOITATION
 Then on-going process of considering,
ENTREPRENEURSHIP
evaluating, and pursuing market-
ENTREPRENEURSHIP based activities that are believed to be
 From the French word “entreprendre” advantageous for the firm.
meaning “to undertake” or “to start”.
 An activity that involves the EXAMPLE: Lend money and good location
discovery, evaluation, and
exploitation of opportunities to 3. RESOURCE MOBILIZATION
introduce new goods and services.  Refers to all activities involved in
 Having profits for bearing uncertainty securing new and additional resources
and risk. (Knight 19210) for you organization.
 Capacity for innovation, investment,  Involves making better use of and
and expansion in new markets, maximizing existing resources.
products, and techniques. (Fajardo,  Often referred to as “New Business
1994) Development”.
EXAMPLE: Investment
ENTREPRENEUR
 One who organizes, manages, and
assumes the risk of business. 4. ENCOUNTERING RISK AND
 Person behind the entrepreneurship UNCERTAINTIES
possessing certain characteristics and  Entrepreneurs live with risk and
different traits which make him uncertainty. They don’t have a choice.
unique. The future is up to them.
 They are responsible for their success
COMMON ELEMENTS OF and failures, and success is never
ENTREPRENEURSHIP permanent.
1. INNOVATION  Entrepreneurs have to learn to handle
 The process or act of introducing new the risk and uncertainty of having to
ideas, devices or methods to an be responsible for their company and
organization. employees.
 Creating new service, system, or EXAMPLE: Required hiring more employees,
process, or enhancing existing ones. purchasing more equipment, investing more
 Product Innovation- change in money, and decision making.
product.
 Packaging Innovation- change 5. ECONOMIC AND PERSONAL
in packaging but product REWARDS
remains the same.
  Finding new materials provides help
in the economic growth of the place.

Lesson 2 These could be sourced

EMELANE from
of the value creation.
ROSE A.because
GALVAN

RELEVANCE OF 5. STIMULATES (ENCOURAGE)

ENTREPRENEURSHIP AND INVESTMENT INTEREST IN THE
ENTREPRENEURS IN ECONOMIC NEW BUSINESS VENURES BEING
VREATED
DEVELOPMENT AND SOCIETY  When they engage in a business it
stirs curiosity to other people to invest
CONTRIBUTION OF THE to the business because of the benefits
ENTREPRENEURSHIP TO THE it offers. These new investments
ECONOMY AND SOCIETY contribute to economic growth.
1. CREATES EMPLOYMENT
 When they put their business, they 6. IMPROVES THE QUALITY OF
employ people to help them operate LIFE
their business.  Their new products or services
 When entrepreneurial activities slow developed contribute to the increase
down, the country’s unemployment in the personal benefit and
rate goes up. convenience of people in society.
 The use of automatic gadgets in
2. DEVELOPMENT OF NEW cooking, washing clothes, mobile
MARKETS phone, and many innovations leads to
 They are opportunity seekers. They a better quality of life.
seek new buyers of their products and
they go beyond the existing places 7. SERVES AS ROLE MODEL
where their products are sold and look  They are people to be emulated by
for other people who will be younger generations in the community
interested. and the society.
 Their behaviors and attitudes (risk
3. INTRODUCES INNOVATION taking, alertness, and creativity) are
 Innovation is done in the products, some of the characteristics that will
services or technology. also make them successful
entrepreneur in the future.
4. GENERATES NEW SOURCES OF
MATERIALS 8. BRINGS SOCIAL BENEFITS TO
 They are always in constant search for THE PEOPLE
better and cheaper sources of  They are paying taxes, permits and
materials they need. licensed to operate their businesses.
The government then used it for the
 people especially the poor to have 1. CALCULATE RISK TAKING
more access to social services such as  Doing everything possible to get the
roads, bridges, education, and etc. odds in their favor and ROSE
EMELANE theyA. GALVAN
often
9. UTILIZES AND MOBILIZES avoid taking unnecessary risks.
INDIGENOUS RESOURCES 2. COMMITMENT
 Small and Medium Enterprise (SME)  Unwavering dedication to work.
will always look for cheaper and local EXAMPLE: Convincing others like investors to put
materials to supply their needs. up money and etc.
 They make use of idle or unused
resources to meet their needs. This 3. FEEDBACK SEEKING
saves much in terms of foreign  Asking comments, reaction, and
currency or local enterprise patronize suggestion from their employees and
their own resources and they do not customers.
become dependent on imported
materials. 4. PERSEVERANCE
 Determination to succeed by
10.PROVIDES MORE overcoming obstacles and setbacks.
ALTERNATIVES FOR
CONSUMERS 5. SELF CONFIDENCE
 The stiff competition in the market for  Belief that together with other people,
cheaper and quality products and things can be done in the business.
services requires the entrepreneurs to
come up with more products or 6. OPPORTUNITY ORIENTATION
services consumers can use from it.  Constant awareness of opportunities
that exist in everyday life.
CONCEPT OF
ENTREPRENEURSHIP TODAY 7. INNOVATIVENESS
 Ability to come up something
different and unique every time.

8. RESPONSIBILITY
 Willingness to put themselves in
situations where they are personally
responsible for success and failure of
the business.

9. TOLERANCE FOR FAILURE

CHARACTERISTICS OF AN
ENTREPRENEUR
 EMELANE ROSE A. GALVAN

HOW ENTREPRENEURS THINK

1. ACTUATE SELF-ASSESSMENT
AND CHOOSE COURSE OF
ACTION
 At the start, they determine what they
have, like knowledge, skills,
resources, and people they know.
Then choose from possible outcomes.

2. GENERATE MULTIPLE DECISION

MODELS
 They use mental models to identify
and invent new products or services
and to obtain the necessary resources
for their creation and development.

3. LEARN FROM FAILURE

 Failure is very common among
entrepreneurial firms. There are many
causes of failure such as lack of
experience in doing business, inability
to attract new funding, lack of new
product development effort, entry into
a new product without a plan, alliance
with a former competitor, lack of
supply of needed raw materials,
family conflict over the management
of the business, resignation of skilled
workers and many more. But among
these reasons the most common is
insufficient experiences.
 Failure always results in negative
emotions like anger, guilt, anxiety and
hopelessness. These negative
reactions can hinder the
entrepreneur’s ability to learn from
failure and the motivation to try again.