ICT 12 – NEWTON Reviewer

Understanding Entrepreneurship

Before we start with the definition of entrepreneurship, let us first learn its etymology. The
term “entrepreneur” comes from the French word entreprendre, which means “to undertake.”
It connotes a business paradigm that signifies the start of a new business undertaking. On
the other hand, the term “entrepreneurship” comes from the word entrepreneur.

Entrepreneurship is the art of observing correct practices in managing and operating a self-
owned wealth-creating business enterprise by providing goods and services that are
valuable to the customer. It refers to a particular field of practice or process, as compared to
an entrepreneur which is practicing entrepreneurship. Comparatively, the relationship is like
that of a manager and the management in which a manager is a person who practices
correctly the concept of management. Acquiring sufficient knowledge of entrepreneurial
principles equips you with the necessary tools in handling and maximizing entrepreneurial
opportunities. However, even a full understanding of the concepts and principles of
entrepreneurship is not assurance that you will become a successful entrepreneur. You have
to work hard to be successful.

Benefits To Senior High School Student

✓ Classify individual entrepreneurial interest

✓ Apply basic marketing acumen
✓ Determine legitimate sources of resources
✓ Analyze ownership structures
✓ Convert threats into opportunities
✓ Adaptation of concepts and strategies for idea generation
✓ Evaluate feasibility of ideas
✓ Discovery of entrepreneurial innovators who also have the competencies and edge to
start their own business
✓ Consider ethical and legal business practices
✓ Write micro business plan

Usefulness Of the Course to The Students

✓ Develop skills in starting up a business

✓ Demonstrate skills maintaining business in long term basis
✓ Enhances knowledge of business operations and expansion
✓ Find next level of training or access other resources and services
✓ Demonstrate business management
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✓ Uses components of a business plan

✓ Consider to become employer rather than employee
✓ Change attitude toward entrepreneurship as a means of making a living
✓ Change in personal and career attitudes including:
• Communication
• Self-actualization
• Ability to manage one’s own life
• Self -concept and awareness
• Problem solving
• Collaboration/networking
• Motivation
• Creativity
• Teamwork

Importance of Entrepreneurship Education

✓ Entrepreneurship is very important to our economy.

✓ Entrepreneurship education is an individual life long process.
✓ Entrepreneurship will energize school management.
✓ Entrepreneurship will transform learners to be innovators.

Key Concept of Common Competencies

In starting a business, learners should seek entrepreneurial found competencies such as:

1. Locus of control - Entrepreneurs must know how to determine the state to which a
person agreed that or actions can be directly affect situation, or can control a result.
2. Specific goal setting - Entrepreneurs should be motivated to set goals, particularly
business growth objectives, to increase firm growth resulted in the firm performance
and innovation.
3. Self-efficacy - Entrepreneurs must believe in their own ability or self-confidence.
4. Layers of competency - Entrepreneurs should know the group attributes, some of
which are applicable to all entrepreneurs, which others are occupation/industry
specific.
5. Need for achievement - Entrepreneurs must have a high need for achievement and
take responsibility for outcome.
6. Ambition- Entrepreneurs must be motivated, persistent, and should persevere even in
the face of situational challenges.
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7. Willingness to learn- Entrepreneurs should have strong willingness to learn and pursue
opportunities to acquire new skills and competencies.
8. Strong initiative- Entrepreneurs must have a high initiative and often driven to work.
9. Adaptability and flexibility- Entrepreneurs must learn how to be high flexible and
adaptable and often deal very well with a unique ability to choose actions even
without all necessary information.
10. Willingness to take risk- Entrepreneurs are skilled at developing new plans and
scenario and can also identify and calculate risk.
11. Interpersonal skills- Entrepreneurs have the skills of working well with people from
different backgrounds.

Ten Competencies for Entrepreneurial Success

✓ Integrity – An entrepreneur has a positive sense of values and personal beliefs,

creating in making business decisions.
✓ Conceptual thinking – The entrepreneur is prepared to use new approaches and
comes up with new ideas that may enhance work.
✓ Risk Taking – The entrepreneur understands that risk taking means trying to anticipate
future problems thus solve new problems that may arise in the business organizations.
✓ Networking/Collaboration – The entrepreneur understands that networking can
provide access to information, collaboration and profits; and that careful planning
and preparation help achieve desired results.
✓ Strategic Thinking – The entrepreneur understands that thinking using strategies can
help aging achieve goals in the organization.
✓ Commercial Aptitude – The entrepreneur keeps himself updated with development in
the locality; seeks out best practice; and identifies and determine opportunities.
✓ Decisiveness – The entrepreneur resolves issues as they arise in an avoidable situation
and respond flexibly to deal with changing priorities set by upper priorities.
✓ Optimism – The entrepreneur persists in pursuing goals despite hindrances and
problems; performs in hope of success rather fear of failures; and manages difficult
situation.
✓ Customer Relation Service – The entrepreneur develops and builds trust and long-
term relationship with customer.
✓ People Centered - The entrepreneur creates commonality among stakeholders, sees
and values the best in others.
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Core Competencies in Entrepreneurship and Job Opportunities

The entrepreneurs are individuals who are alert to profitable opportunities for the
exchange of goods or services.

Entrepreneurial Skills and Competencies

✓ Negotiating
✓ Planning
✓ Risk Assessing
✓ Purchasing
✓ Accounting
✓ Recruiting
✓ Training
✓ Selling
✓ Controlling
✓ Dealing with Emergencies

Different Approach to An Entrepreneur

✓ A Missionary
He/she can perceive opportunities to make something new or to improve his products
or services
✓ Goal Driven
He/she sets high goals and strives to attain the projected target and accomplishment
He accepts Challenges and responsibility for result
✓ Marketing Man
He/she can properly identify the needs and wants of the customer and the society
He/she start at small scale but using the managerial talents and persistence he grabs
opportunity to grow and expand.

Factor That Develops Entrepreneurial Activity

✓ The Entrepreneur takes the initiatives

He/she takes the initiative of venturing into business.
✓ The development of Administrative Machinery
He/she assigns individuals with talents and skill to a particular task or duty
✓ The development of Entrepreneurial Autonomy
He/she takes the lead in all the activities of the Organization especially in the initial
stage of operation
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✓ The development of SWOT Analysis

He/she must see the environment of the enterprise based on Strength, Weaknesses,
Opportunities and Threats of the organization especially on early stage of operation
to forecast future risk.

Job Opportunities

✓ New Idea
✓ New product
✓ New Business
✓ New Employment

Factors to consider in putting

✓ Start to be on your own.

✓ Explore the business Environment.
✓ Be in control.
✓ Have a good accountant or trusted financial adviser.
✓ Seek professional advice.

Qualities of Successful Businessman

✓ Alert to opportunities and perceptive to make things happen

✓ Endurance to work long hours
✓ Flexible and adapts changes
✓ Self-assured
✓ Personally, seeks information or opinion and conduct researches
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Entrepreneurs are vital in the economic development of the country. They provide
employment and income that move the economy forward as shown in the cycle of
development above. Thus, the cycle results to development as more people are employed
and enjoy an income through the investment of entrepreneurs. The Government likewise
benefits in the process because entrepreneurs, as businessmen, pay taxes, hence
government has fund to provides services to people.

The Search for Business Opportunity Should Start with The Individual Entrepreneur.

✓ He/she has to find out the skill and talent for that particular type of business activity.
✓ His/her talent and skill are the beginning of his/her great investment in the trade.
✓ He/she must have the passion for independence and willingness to work hard and
long to keep up with his/her dream of being entrepreneur.
✓ The entrepreneur reacts positively to changes in the environment. Changes in the
business environment bring new for entrepreneur opportunities.

Factors To Consider by A New Entrepreneur

✓ Know your product or services.

✓ Analyze the market potentials.
✓ Determine the marketing strategy.
✓ Know the competitors.
✓ Do not set on your Laurels

SWOT ANALYSIS (Strength, Weaknesses, Opportunities and Threats)

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It is an entrepreneurial tool in determining the profitability of the business operation.

Opportunities carries with it some risk involved and this should be look into carefully. The
strength and weaknesses are internal factors to the entrepreneur while opportunities and
threats are external factor.

Areas of Product Evaluation

PRODUCT STRENGTH IN THE MARKET

✓ Available technology in the product processing

✓ Source of raw materials must be abundant and at lower price
✓ Skilled workers must be available
✓ Capital investment in machinery and operating expenditure
✓ Expertise and technical skills of the management team

CHARACTERISTIC OF WEAK PRODUCTS AND WEAK MANAGEMENT

✓ Poor quality and high price

✓ Product design and appeal
✓ Production cost
✓ Supply and demand
✓ Weak product management

SUSTAINABLE PRODUCT OPPORTUNITIES

✓ Product demand
✓ Presence of poor quality in the market
✓ Government policies and support

THREATS TO PRODUCT PROFITABILITY

✓ Entrance of competition
✓ Depletion of raw materials as competition arise.
✓ The emergence of labor unions

Business Plan

✓ Is prepared using a scientific approach in determining possible business situation

considering the different perspectives of people who are interested in the business.
✓ The business plan is actually the roadmap of the new business. It is the only single
written document that must be prepared before opening a new business or expanding
an existing business. It provides a clear direction to any uncertain business endeavor.
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5 Chapters of Business Plan

✓ Executive Summary
✓ Management Aspect
✓ Marketing Aspect
✓ Technical Aspect
✓ Financial Aspect

Identify the Market Problems and Techniques on Seeking, Screening, and Seizing
Opportunities

✓ Existing customers – people who already purchased the product you are selling
✓ Target market users – people in your target market who are not currently looking for
a solution to their market need.
✓ Prospect or Potential buyers – people who have not yet purchased your product but
have an intention to buy.
✓ Customer- The one who purchase/buy a product
✓ Consumer- The end user of a product
✓ Brand Image – Anything that distinguishes a company’s product from other similar
product. Example of brands, include logos, catchphrases, or symbols. Brand makes a
product more recognizable and therefore is likely to attract customers and customers’
loyalty.
✓ Market Characteristic – describes attributes of the buyers in making decision related
in purchasing a certain product.
✓ Market Potential – the estimated maximum total sales revenue of all suppliers of a
product in a market during a certain period.
✓ Market Share – is the percentage of a total sale volume in a market captured by a
brand, product or company.
✓ Distribution Research – determine on how to transfer the product from the
manufacturer to ultimate user.
✓ Market Segmentation – grouping of customers by similar characteristic or similar
behaviors.
✓ Pricing Research – determining the ideal price for the product. Setting the price for the
product is one of the most important marketing steps.
✓ Product Research – testing the new or revised product or completing marketing
✓ Promotional Research – determining the best research in the area of information
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Factors that are Contributory Determinants to Slow Growth in Economic Development

1. The Filipino Values and Culture

✓ Love for Imported products – We still feel that imported products are superior in
quality. Buying imported goods develops the economy of the foreign countries and
drains the Philippine economy.
✓ Values of Bahala Na – concept of belief in BATHALA, the Gods of lazy of bones and
undetermined individuals. A truth Filipino entrepreneur will not put his destiny in the
hand of BATHALA.
✓ Crab Mentality – Act of people to pull down others because of envy and jealous.
✓ Manana Habit – MAMAYA NA or BUKAS NA is a culture that is bought to us by the
colonizer who were found of SIESTA after lunch time.
✓ Value of Time – Time wasted is opportunity lost in making fortune. Time is gold as the
saying goes. Entrepreneurs get the golden opportunity as they do not lost time to
make money and fortune.
✓ Value of HIYA – could be a positive value in dealing with business condition. It could
be propelling reason for us to create better service and proper dealings in business
transaction. There are still many of us who make short cut in business dealings. Good
in its face value but with hidden agenda of fraud and deception.
✓ Fiesta and Social Occasion – The celebration of Fiesta of Saints we inherited from the
Spanish colonizers could be another factor in the slow development of our country.
specially in the country side would have all their savings spent in a day of the fiesta,
entertaining guest, only to find out the next day that there is no more rice to feed their
children.
2. Information of the Means to Obtain Capital

Most of the aspiring entrepreneur came from the poor status of life and majority do not have
the means to start a small business.

✓ RA 6977 Magna Carta for Small Business or Enterprise

o Developmental funds for entrepreneurs in the country side
o Small and Medium Enterprise
o Engaged in Agribusiness
✓ RA 6810 Magna Carta for Countryside and Barangay Business Enterprise