INTRODUCTION TO ENTREPRENEURSHIP

The Philippines is the heaven for the development of young entrepreneurs. As a

developing country, its resources are worried and numerous. We need only to focus on areas
where business opportunities are open to small and medium enterprises. In the age of
globalization, small and medium enterprises should come in and explore the wide area of
business opportunities. Small and medium enterprises are the key economic development, as
they employ more people and use the resources of people’s talent and ingenuity. Family
enterprises often start with an idea and strive to give forms to that idea. Generation of ideas
comes at the time of crisis, and people begin to find ways of making a living.
Most economies of the world are in shamble. The economy of the United States and
Europe is facing a new danger, and they face billions in public debt. Big Banking Institutions
have high exposure in foreign debts from the powerful economies of the world. In Asia,
Philippines is affected by the global economy. Asian nations sustain modest growth rate of
our country’s survived economic crisis.
In this global situation, it is the entrepreneur who could change the global economic
landscape. One thing that one can do is threaten the domestic economy by developing new
industries and generate local employment for our people. Let us open new avenue to explore
the market that is undefeated and undeveloped.
Our country, although on the verge, two industrialization is still agricultural in nature.
The vast truck of land in the countryside is underdeveloped, and the farmers are just
surviving. We need to improve the economic sectors by providing the necessary inputs to the
production of more rise and vegetables for the less privileged Filipinos. The government in
the Bunking Institution should help in the form of grants and loans with low interest rates.
The farmers are still the backbone of our economic development, higher rates of population
are in the rural areas.
Development of the rural economy is not a one-shot deal. It needs a thorough analysis
of the factors of the production and distribution of goods. We need to support the production
of more goods, but we also need to develop alongside with it. The development of new
industries that will support the excess production by turning it into finished products that will
be supported to other countries, or for domestic consumptions.
Farmers in a northern Philippines can produce more tomatoes, but the government
must sustain the price index by establishing processing plants and turning them into tomato
paste or tomato sauce. Bananas in the southern Philippines have excess production of rejects,
where are just fed to animals. This can be turned into the processing plant by banana ketchup
and or into powder form that could be used for food consumption. This is a development
strategy that entrepreneurs could come in as they could sure develop new technology to put
into proper use. This wasted resources. Refocusing attention to the countryside as
entrepreneur and developing new industries that will develop our economy should be the top
priority.
 CHAPTER 1
CONCEPT OF ENTREPRENEURSHIP
“Opportunity comes from one person’s idea that influence others to take action”
LEARNING OUTCOMES
1. Define what is entrepreneur;
2. Describe the key concepts in making of an entrepreneur;
3. Identify the factors that develop entrepreneurial activities and successes;
4. Give the differences between a manager and an entrepreneur;
5. Discuss the development of entrepreneurship;
6. Elaborate the making of Filipino entrepreneur and their profile; and
7. Discuss the challenges in entrepreneurship.
ENTREPRENEURSHIP
It is a science of converting process ABS into a remarkable business venture.
According to Fajardo 2009, it is also a capacity for innovation, investment and expansion in
new market products and techniques. This is. Definition implies that an enterprise is at work,
whatever, or whenever an individual takes the recent invest resources to make something
unique or something new. Designs a new way of making something that’s already exist or
creates new markets.
THE ENTREPRENEUR
And Entrepreneur is an individual who is alert to profitable opportunities for the
exchange of goods and services. A street vendor in the Divisoria taste of fortunately to make
profit by school supplies during the opening of school, during Christmas, he or she takes the
opportunity to serve Christmas items, and in other cases, several clothing apparels at different
seasons. A cell phone repair man takes the opportunity to serve in wireless cellular owners
who cannot afford to buy new models.
An entrepreneur is one who organized managed direct and assumes the risk of
business or enterprise being an entrepreneur is a lifestyle or an attitude. It is not appalling for
everyone, but rather a choice.
These 15 questions that a potential entrepreneur must ask himself or herself be before
setting up a new business. I yes or no answer is highly recommended.
1. Am I a planner, dreamer or a goal Setter?
2. Do I offer a product that people want to buy?
3. Do I have enough resources to start the business?
4. Will my business plan allow cash to Flow as soon as possible?
5. I am working around a tight budget for my expenses?
6. Do I have good credit status?
7. Am I expecting too much from my revenues as a result of my hard work?
8. Am I ready to assess and measure everything before putting it out for the public?
9. Do I have strong people skills?
10. Do I enjoy making decisions and being in charge?
11. Am I good at short- and long-range planning?
 12. Am I willing to take initiative when confronted with difficult situation?
13. Am I flexible and can adapt to changing circumstances?
14. Am I willing to take calculated risk?
15. Am I ready to learn and accept the mistakes that I might encounter along the way?
If you could answer yes, the most of the questions, then you are probably ready to
become an entrepreneur. There are no correct answers for these questions, regardless of your
answer. These are some of the best realities that you must face when starting a business.
Demand for your product or service cash flow income marketability and flexibility. Be
prepared to navigate the road to entrepreneurship and harder the changes and roadblocks
along the way.
Source: Entrepreneur: The Ultimate Guide to Starting Your Own Business.
THE ENTREPRENEURIAL SKILLS AND COMPETENCIES
The entry plenary skills and competency factors are the following: negotiating,
planning, risk assessment, purchasing, accounting, recruitment training, selling, controlling,
and dealing with emergencies.
The Entrepreneur as a Missionary
The entrepreneur is a missionary who perceives opportunities inherent in the
exchange of goods with great desire for profit. The entrepreneur creates an environment in
which success is possible and the possibility of failure is controllable. The entrepreneur is at
work whenever he takes recent invest his personal talents and resources to make something
new or different as their customers like to buy new and improved products.
Entrepreneur is Goal-Driven
An entrepreneur is gold driven and self-confident as he exercises the locus of control.
He sets high goals and strives to attain the projected target and accomplishments. He extracts
compliance with set goals and activities to avoid there is he foresees while planning the
activities and programs in the operation of the enterprises. He accepts challenges and
responsibility for results. He made sure that people were based on specified work programs
and schedules.
The Entrepreneur is a Marketing Man
The marketing environment is identified by the entrepreneur, and thus he martials his
resources to pursue the opportunities and makes it actions to exploit his personal gain. The
needs and wants of customers are properly identified, and these are the properly reasons for
him to take the opportunity to make profit. He takes the lead for innovation and makes
modifications to make the customer aware that his product or service is more superior to
those offered by others.
The Entrepreneurs Start Small to Become Big
Many entrepreneurs start more, but with their managerial talents and persistence, they
exploit the opportunities available for their disposal. At the early stage, their growth
orientation is for expansion of their operation, and they persistently pursue approaches that
differentiate them from other managers.
THE MAKING OF AN ENTREPRENEUR
The making of an interpreter is a dynamic process and an approach. As an approach,
the entrepreneur considers the business opportunity as a chance to find new ways to solve the
problem, rather solving the problem. A manager of an organization is characterized as an
adapter, while the character of an entrepreneur is an innovator. The manager employs
discipline and precise methodological approach in solving business problems while an
innovator entrepreneur approaches the problem on a different angle, as he focuses on
discovering problems and make new avenues for its for its solutions, entrepreneurship is a
process that can be developed, learn and nurtured.
ENTREPRENEURSHIP AS A DYNAMIC PROCESS
Entrepreneurship is a dynamic process of innovation and the establishment of new
opportunities for the creation of new venture. The small business owner entrepreneur, in the
sense of self employed and is different from an innovator interpreter. The room interpreter is
an individual with the greatest drive for expansion and growth, and has propensity to make a
difference in terms of their achievements in profit and exploitation of the resources for
growth and business expansion.
The entrepreneur develops strategic plans and programs that will ascertain a different
advantage over the others in their line of businesses. This is the reason why we see people in
the same line of business that others had gone miles over the others. The former is a manager
of his business, while the latter is an entrepreneur.
FACTORS THAT DEVELOP ENTREPRENEURIAL ACTIVITIES
1. The Entrepreneur Takes the Initiative
With his great interest to capitalize on the opportunity at hand, the entrepreneur
takes the initiative of venturing into business with an amount of knowledge he knows that
he can operate the venture with minimum risk, armed with vigor and with ability he
plunges a profitable operation.
2. Organization of Capital Resources
While talents and ambitions are great resources of the entrepreneur financial and
human resources are important ingredients in the start of organization. With his savings
and other financial resources, he starts operation on small scale together with his trusted
family members or friends. He knew that could help him develop his dream enterprise.
3. The Development of Administrative Machinery
The management is developed with organizational structure based on the agreed
of operation, specific duties and responsibilities are assigned to individuals with talents
and skills that fit their respective position. It is based on the individual capacity to do the
job not on personal connection with the entrepreneur.
4. The Development of Entrepreneurial Autonomy
They entrepreneur develops autonomy in the operation of the enterprise, as he
takes the lead in all activities of organization, especially in the early stage of operation.
 His venture capitalizes as he knows best the direction of the enterprise, as he is aware of
the calculated risk involved. Locals, of course, control must be in his hands.
5. The Development of SWOT Analysis.
The avoidance of risk can be taken with careful analysis of the strength, weakness,
opportunities and trends of the organization. The entrepreneur must see the environment
of the enterprise based on SWOT analysis, so that the is involve could be seen before it
happens. Forecasting environmental events are antidote to future business risk.
PECULIAR CHARACTERISTICS OF MANAGERS IN SOLVING PROBLEMS
1. He develops systems and procedures that are precise based on current practices in an
industry.
2. The manager is interested in solving organizational problems rather than finding other
avenues in the solution of the problems.
3. The manager calibrates in the refinement of policies and procedures and tends to
revise them to solve existing problems.
4. He finds ways and means to provide solutions and compliance to routine activities.
5. He is interested in details and sensitive to group cohesion and extract group
cooperation as a means to group accomplishments.
CHARACTERISTICS OF AN INNOVATOR ENTREPRENEUR IN SOLVING
PROBLEMS
1. He looks at the problem on different angles and finds means circumvent the same.
2. He discovers the roots of the problem and develops avenues to better solve the
problem. He formulates solutions and alternatives.
3. He develops basic assumptions and hypothesis related to current practices and makes
innovations based on careful analysis through SWOT analysis.
4. The innovator entrepreneur is interested in the ends, result rather than the means to
achieve it. Has little tolerance for details and routine work.
5. Hey capitalize on people with bright ideas and talents and gets their opinion and
consensus and with little regard for people with media core ideas.
THE DEVELOPMENT OF ENTREPRENEURSHIP
The Making of Filipino Entrepreneur
The making of Filipino entrepreneur is a process of trial and error. The colonization
of Filipino for more than 300 years is a great factor in the slow development of
entrepreneurial activity in the country. Our concept of owning the small business like a store,
or a small tailoring shop, or a repair shop, or market distribution of that already makes the
person an entrepreneur. When this concept is true to certain extent, entrepreneurship is more
than being self-employed and making a living out of the meagre income to support family
needs for a little of their wants.
The success of Filipino entrepreneurs stands in a very shallow foundation. Most
Filipino business starts on a copycat syndrome. For example, Maria will start a serious store,
and here comes Pedro seeing the flourishing business of Maria open store, opposite the other
corner. Juana starts a barbecue stand on the corner and petrol with another outlet offering
another variety of street foods. This is the scenery in most Philippine business conditions.
The food business outlet is one of the most abuses and more permanent activities of
some Filipino business entrepreneurs, including the small outlet in the distribution of the
basic grocery and other items called, or, in some cases, mini grocery stores. Some
enterprising of deaths include cellular phone load that adds to their income.
THE MAKING OF JOLLIBEE FOOD’S CORPORATION
The true Filipino entrepreneur is more than of that copycat. Will we consider the
success of Jollibee Corporation in the food industry? The founder is not a true Filipino in
three cents of his origin. He has a Chinese food blood, which he inherited his business
acumen from his parents, who knew how business should grow and prosper.
He started with an ice cream stand, and later made it into an outlet of chicken, joy and
other food items that answers the Filipino days. But especially for children. His success was
based on his talent for innovation and finding a business that make him a multimillionaire.
THE FOUNDATION OF NATIONAL BOOKSTORE
The making of national bookstore is not a myth or fortune and honey. The founder
Socorro Ramos came from a poor family who sustained a living from selling various items to
support their basic needs. She was a working student well in high school, but because of her
persistence and perseverance, he graduated with honors. Being a working student was a
hindrance to her education, as he painstaking the combined studies with hard work.
After high school, she worked as a sales clerk in Goodwill Bookstore owned by her
brother, where she learned the real demands of book business. Learning the hard way is not
an easy task. And starting a business. Magnitude, with more than 30 branches all throughout
the country, was a product of entrepreneurial acumen coupled with determination and hard
work.
Business capital for expansion could come from savings and other sources. The
Ramos couple knew that they could expand their business with the savings that they had and
bought the present office of the store as a result avenue in Santa Cruz, Manila, whereas nine
story, if edifice was built. They built a building complex in passing for printing and other
services are being made.
With the help of their children, they went into practical expansion by establishing
printing press to print local books and other office forms and surprise. They ventured on other
business activities and expand horizontally and vertically and made them of what they are
today. Their children were trained the same hard way, and they are all successful, fitted to
inherit the new growing business empire.
LEONARDO SARAO, THE JEEPNEY KING
The success of the jeepneys business is the making of the Filipino entrepreneur. Sarao
jeepneys Abound in all terminals during the early period of transport development in the
country, until capital cuts made deepness of similar styles. Leonardo Sarao the jeepney king
started the business by being a helper mechanic until he establishes his repair shop from a
meagre capital.
 He then started buying second hand parts and hinges from Japan and built Japanese
that abound in most streets of the Metropolitan Manila and its suburbs. He established the
jeepneys factory with meagre capital and made savings to expand his operations. He ventured
into other business activities and success was not based on his education, but hard work and
determination. All these children became professionals and are engaged in various business
activities that made them of what they are today.
The mentioned few successful stories of Filipino entrepreneurs will serve as a self-
propelling reason for us to think that the making of Entrepreneurship is not served in silver
platter. The career of this huge successful entrepreneurs was built with entrepreneurial genus
founded on slow and painstaking hard work. Their personal objectives are not only to
generate money to sustain basic needs or wants, but the greater drive for personal fulfillment.
THE CHALLENGES FOR ENTREPRENEURSHIP
The new generation of young entrepreneurs should look up the high standard of
values and character of entrepreneurs who got up the ladder of success. Success in
entrepreneurial activities based on the inner compulsion to achieve the undeterred difficulties.
The values and characters of Juan Tamad has no place in the world of entrepreneurial
vocabulary.
1. The new entrepreneur must be a Dover and willing to do work hard until he achieves
the task he wants for himself.
He must possess the versatility for success and self confidence that could be
overcome risk with his strong determination. The expiration of the total business
environment must be put into total perspective as it interplays with the development
of new opportunities. And there is attached to it.
2. Personal attention and comprehensive awareness for the progress of the business is
not trusted on other people.
The entrepreneur must be indirect control of operation and not in indirect
control. He must be able to measure the desired results. He must. He must personally
verify the data and financial figures spent and earned in the operation of the business.
3. The new entrepreneur must have high sense of integrity that he stands firm on his
principles and ideals.
It’s word of wisdom is a contract to depend on. He looks at things in different
perspectives and approaches things with varied alternatives to attain what he wants. In
short, he is visionary, innovative and unstoppable, until he achieves the goal. He sets
for himself.
4. Emotional stability is an important factor in the making of an entrepreneur.
While he is impatient for mediocre performance and lazy bones, his temper
must remain in control. Interpersonal relationships must be the banner in negotiations
and effective personal communication is the key factor in closing business deals.
5. The built-in self-starting mechanism that drives an entrepreneur to success is his
executive ability to manage people and resources. This executive ability refers to how
 he plans organize direct and controls the physical and material resources under his
disposal. Many entrepreneurs are describing to have shrewd judgment and character
that induce them to see things the way it should be. An entrepreneur has a passion for
excellence and mediocre performances. Has no place in his entrepreneurial
vocabulary.
The new entrepreneurs and those who believe in their capacity for long hours
of work to get things done spend 75% in planning innovations and putting them into
actions. Dreams are built around creativity as he conceived original idea out of his
imagination.
The entrepreneur is like a multi awarded artist with a handful of trophies of
accomplishments equipped with inner drive-in transforming ideas into tangible
reality. Sacrifice for long working hours and abandonment of personal life. Pleasures
make the entrepreneur achieve their target goals. They organize and develop their idea
into achievable activities and surveys the factor of risk.
THE STARTING POINT TO ENTREPRENEURAL SUCCES
1. Start to be on your own.
An individual can never attain success in entrepreneurial activity, unless he starts
his own business and releases himself as an employee for the rest of his life. Income from
employment is never enough, as it would only until the 15 th and end of the month. We
found an ordinary employee who gets rich, except those who are connected with a
government in a mass where through graft and corruption.
You may start as an employee get new ideas and develop your own
entrepreneurial style from experience of an education. Start dreaming and be independent.
To save money and be sure to put it in proper investment, then make it as starting capital
to operate your enterprise. Make that money work for you as you think to make it grow
bigger from the dreams you have crafted out of your imagination of success.
2. Explore the business environment.
The Philippines, being a heaven of opportunities, is wide open for people who
dream to be rich and amazed fortune, as we have all the natural resources. Find things you
can do best, and you must have the talent and interest in doing it. Remember that the
central objective of any business is to produce the best goods and those that provide better
services.
With talents you acquire in conducting visibility studies in your college days or
those that you learn from experience, alley your knowledge in swath analysis. Consider
opportunities for expansion as business growth is possible under good management.
3. Be in control.
The entrepreneur must be in the driver’s seat of his business. You cannot trust
your business to somebody who does not own the ideals and aspirations of the enterprise.
Be in control of the operation as you develop people whom you can work with and with
values the same as yours. Invest your time with people who are achievers and do not lose
your valuable time with losers.
 Motivate people to excel and make their desired burning for success with their
accomplishments. Make them partners in decision making and develop their ego needs
for properly recognition. People are your assets that can help you propel success in your
business. Think that improving efficiency and effectiveness will create more space for
growth and development.
4. Have a good accountant or a prestige financial advisor.
While you as an entrepreneur and busy with the management of the business, a
good accountant or financial advisor is needed to help you out in the financial activities of
the enterprise. They can help you reinvest your money to other profitable operations.
While trust and confidence can be given, you must also have the knowledge of the
entry in financial statements. Develop control procedures that you are still in command in
approving transactions involving money and its disbursements. While you economize
your expenditure, be sure that every peso is spent wisely without sacrificing quality in
products or services.
5. See the advice of professionals.
You are not a superman to know all the legal and other mothers related to the
operation of the enterprise. Seek the service of a legal consultant or matters with legal
implications. How have your income tax prepared by good accountant lawyers or
certified accountants that you know how to deal with government regulating body in
terms of tax payments
All legal matters and indicate government transactions must be entrusted to people
with the right connection and know how to deal with business problems, as the
government, as are regulating body, may affect the business operations, especially in the
period of expansion.
ENTREPRENEURIAL MANAGEMENT DEMANDS
Many successful entrepreneurs in the Philippines and those in the foreign countries
are not making of known schools or management. Most entrepreneurs came from scratch and
have acquired managerial in making business empires through shared hard work and
dedications. They possess characteristics and intelligence to make things happen, rather than
wait for things to happen.
While schooling and learning management will guide the making of successful
entrepreneur, the individual talent intelligence coupled with strategies taken to other people
are totally inherent to the entrepreneur.
The demands of the federal success are common in more successful businessmen.
1. The entrepreneur is alert opportunities and perceptive to make things happen.
The entrepreneur looks at things much ahead of other people. He sees things in
different way and develop strategies to make things happen the way he perceives it to
be. Entrepreneur is a starter, but make sure that what he started, he pursues until he
seeds in making it happen.
 2. The entrepreneur has the health and endurance to work long hours.
The dreamer entrepreneur would have stopped working until he finds solutions
to his perceived idea. He spends 75% of his 24-hour time thinking and working until
he gets to the realization of his dream. He is willing to sacrifice personal pleasures in
his request for the true meaning of his ideal setup of the business enterprise.
3. The entrepreneur of flexibility and change.
The entrepreneur does not have a one-track mind. He finds new avenue or
course of action, as he sends some danger zone with on these plans and programs. He
makes easy revisions, but he makes sure that the trap on hand is still towards the
direction he wants to achieve. He grabs new alternatives, and they devise ways to
make a difference.
4. The entrepreneur is self-assured.
The entrepreneur could not easily be rattled by problems or uncertainties. He
has great trust in his capability to develop new things. His intelligence and self-
confidence are always a high level. He is gathered also by his faith in God, that his
good intentions and actions deserve to be fulfilled.
5. The entrepreneur seeks other’s opinion or makes researches.
He believes that a person who asks questions could only be fooled for a
minute, but one who asks no question to be fooled for a lifetime. He seeks the advice
of other professionals that will help make things happen. He indulges in research
activities to find new solutions.
PROFILE OF A SUCCESSFUL ENTREPRENEUR
Successful people in the field of business are creators of things with difference. There
are no ordinary ones who can be seen around the corner. They are people with a great
ambition and are alert to the environment that they can explore towards successful ventures.
They possess Eagles eye that can see and dive hundreds of feet down and make catch the
prey of opportunities.
Most successful entrepreneurs are described to process the following profiles:
1. The entrepreneur has strong desire for independence.
An entrepreneur would not like to be attached to his employment. He seeks
independence and strives to develop his own business. As he acquires new insights and
opportunities, he would seek that sense of Independence. He thinks differently and would
venture in trying to satisfy his own curiosity. He assumes responsibility with pride and
determination.
2. The entrepreneur develops strong drive to succeed.
 Success for people with the profound need to achieve their dreams and life
aspirations. Achievements are the ego of people with the inner desire for independence.
He does not depend on others, as he thinks that the success lies on his own making. He is
good organizer and leads others to successful venture. He finished things he started and
leaves no stone unturned to get his way.
3. The entrepreneur has strong determination in decision making.
The strong personality of entrepreneur carries with it the power to make decisions.
He is aware of developing new markets and creates new things to satisfy customers’
needs and wants. He capitalizes on his inner drive to make profit before anyone else could
take the opportunity. Innovativeness and creativity go with deep power to make decisions.
4. The entrepreneur develops feedback mechanism for results.
The development of feedback mechanism is 1 important factor in a development
of successful business entrepreneur. He goes back to where he starts and finds out things
the way they are. He believes that one who does not look bad and go miles away from his
starting point. Feedbacks are factors for analysis and decision making. He needs data and
figures to make wise decisions.
5. The entrepreneur is a result driven individual.
Profit is the result of accomplishment. His achievements are the driving forces
that keep him awake for more opportunities. He expects results for activities he planned.
Employees with mediocre abilities and low sense of feeling for accomplishment have no
place in his organization. He expects results to be one time and with highest quality. He is
impatient for poor performance and expects quality output.