ENTREPRENEURSHIP

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 UNIT 1 : Core Concepts of Entrepreneurship

CHAPTER 1 UNDERSTANDING OF ENTREPRENEURSHIP

LESSON 1: DEFINING KEY TERMS
LESSON 2: SALIENT OF ENTREPRENEURSHIP
LESSON 3: THEORIES ON ENTRREPRENEURSHIP
LESSON 4: ENTRREPRENEURSHIP AND ORDINARY SMALL BUSINESS ACTIVITY
LESSON 5: MISCONCEPTION ON ENTRREPRENEURSHIP
LESSON 6: IMPORTANCE OF ENTRREPRENEURSHIP
LESSON 7: SOURCE OF ENTRREPRENEURIAL IDEAS
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 ENTREPRENEURSHIP
“ENTREPRENEURSHIP” comes from
the word “ENTREPRENEUR”

ENTREPRENEURSHIP defines as the

art of observing correct practices in
managing and operating a self
owned wealth-creating enterprise
by providing goods and services
that are valuable to the customers.
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 ENTREPRENEUR
The term “ENTREPRENEUR” originates from the French Word
ENTREPRENDRE which means “to undertake”.

Entrepreneur refers to a person who strongly advocates and

correctly practices the concept and principles of
entrepreneurship in operating and managing the self-owned
entrepreneurial venture.
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 WHO IS AN
ENTREPRENEUR?
An ENTREPRENEUR is an
owner of a business who
invests his/her resources to
bring an idea to life, setting the
direction that transform that
idea into reality, thus providing
and gaining value that balances
effort, purpose and profit.
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 Why do people become
Entrepreneur?
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 Is ENTREPRENEURSHIP for
everyone?
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 SALIENT FEATURES OF
ENTREPRENEURSHIP
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 Lesson 2
SALIENT FEATURES OF ENTREPRENEURSHIP

1. It is an art of correct practices.

2. It is a wealth – creating venture.

3. It provides valuable goods and services.

4. It entails opening and managing the self- owned enterprise.

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5. It is a risk taking venture.

 SALIENT FEATURES OF ENTREPRENEURSHIP

1. Art of Correct Practices

Entrepreneurship is an art and not a science thus, there

is a constant change; it continuously grows, develops,
improves and expands. As an art, it is closely related to
creativity that contributes to the enhancement of the
enterprise. Entrepreneurship education teaches how
failure makes people more creative and innovative.
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 SALIENT FEATURES OF ENTREPRENEURSHIP

2. Wealth creating venture

How are you going to define wealth? Although profit is a

good indication of wealth, improving the life of an
entrepreneur in terms of economic, financial, social,
moral and psychological aspects are also priceless
outcomes of entrepreneurship.
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 SALIENT FEATURES OF ENTREPRENEURSHIP

3. Providing valuable goods and services to customers

Products and services are considered valuable when they satisfy
the needs and wants of the customers.
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 SALIENT FEATURES OF ENTREPRENEURSHIP

4. Opening and managing self owned business.

Businesses which are managed by other people for the benefit of
the owner falls under intrapreneurship. Entrepreneurship is
different from intrapreneurship. The concept of entrepreneurial
endeavor may range from a small sari-sari store up to multimillion
companies as long as the business is managed by the owner
himself.
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 SALIENT FEATURES OF ENTREPRENEURSHIP

5. Risk taking venture

Risk is a part of any entrepreneurial endeavor. A good
entrepreneur does not avoid risks; rather face them by analyzing
the risks and good decision-making skills for the survival of the
venture. The pandemic caused many business establishments to
cease operations and this had a huge impact on the sales of
business ventures. Some entrepreneurs resort to online selling of
their products as to not fully stop their ventures and have an
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alternative way of gaining profit during this situation.

 Lesson 3

THEORIES ON ENTREPRENEURSHIP
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 THEORIES ON ENTREPRENEURSHIP

1. Innovation Theory

2. Keynesian Theory

3. Alfred Marshall Theory

4. Risk and uncertainty – bearing theory

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5. Other theories on entrepreneurship

 1. INNOVATION THEORY

BY : JOSEPH SCHUMPETER It become the primary role of the

entrepreneur to introduce innovation in
any of the following forms :
An Austrian Economist and Political
Scientists. He wrote about it in his book, 1. New Product
The Theory of Economic Development.
2. New Production Method

Schumpeter strongly believed that

3. New Market
innovation is the force that will propel
the revolutionary change.
4. New Supplier
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5. New Industry Structure

 2. KEYNESIAN THEORY

The Keynesian Theory on entrepreneurship was

developed by JOHN MAYNARD KEYNES, a
British Economist. The key concept of the theory
were included in his book , The General Theory
of Employment , Interest and Money, which was
published during the Great Depression in 1963.
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 KEYNESIAN THEORY

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. It suggests that
entrepreneurial activities may not be favorable in
the future unless the short-term problem of
economic disequilibrium is finally resolved
through the active participation of the
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government.
 3. ALFRED MARSHAL THEORY

The entrepreneurship theory of Alfred Marshall,

an English economist, was introduced in his book
,Principles of Economics. As he strongly asserted
that there are four factors in the production.
(LAND, LABOR, CAPITAL, AND
ORGANIZATION) of goods and services in the
economy.
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 4. RISK AND UNCERTAINTY – BEARING
THEORY

FRANK HYNEMAN KNIGHT, an American

Economists, conceptualized the Risk and
Uncertainty-Bearing Theory of entrepreneurship
in his book, Risk Uncertainty and Profit.

Knight states that an entrepreneur faces the risk

uncertainty in the process of connecting the
suppliers and the buyer.
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 5. OTHER THEORIES ON ENTREPRENEURSHIP

WEBER’S SOCIOLOGICAL THEORY = The

sociological theory of weber asserts that social cultures
have significant contribution to entrepreneurship.

KALDOR’S TECHNOLOGICAL THEORY = The

technological theory of Kaldor gives importance to the
advancement of technology as an element of
production.
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 5. OTHER THEORIES ON ENTREPRENEURSHIP

LEIBENSTEIN’S GAP - FILLING THEORY = The gap

filling theory of Leibenstein advocates that
entrepreneurship fills gap in any economic activity.

KIRZNER’S LEARNING – ALERTNESS THEORY =

The learning – alertness theory of Kirzners focuses on
learning and alertness as the primary attributes of
entrepreneurship.
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 Lesson 4

ENTREPRENEURSHIP
AND ORDINARY
SMALL BUSINESS
ACTIVITY
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 ORDINARY SMALL BUSINESS

Who is not advocates and

SMALL BUSINESS does not practice the
Refers to a business or enterprise that concepts and principles of
correctly adopts and practices the
principles of entrepreneurship. entrepreneurship.
Its owned by one person with limited
workforce of not more than 20 person.
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 The entrepreneur and the owner of an ordinary small
business are different in the following areas.

1. MOTIVE IN OPENING A BUSINESS

2. PERCEPTION OF RISK IN THE BUSINESS

3. REACTION TO CHANGES IN THE ENVIRONMENT

4. VIEW ON COMPETITION

5. VISION FOR DEVELOPMENT AND GROWTH

6. HORIZON OF BUSINESS OPERATION

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7. SOURCES OF BUSINESS FUNDS

.
 Lesson 5

MISCONCEPTION ON
ENTREPRENEURSHIP
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 MISCONCEPTION ON ENTREPRENEURSHIP

1. ENTREPRENEURSHIP APPLIES ONLY TO MANUFACTURING

BUSINESS.

2. ENTREPRENEURSHIP APPLIES ONLY IN SMALL BUSINESS.

3. ENTREPRENEURSHIP APPLIES MOSTLY TO PERSON WITH

GOOD EDUCATIONAL BACKGROUND IN BUSINESS COURSE.

4. ENTREPRENEURSHIP APPLIES ONLY GOOD ECONOMY.

5. ENTREPRENEURSHIP IS SIMPLY OPENING A SMALL

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BUSINESS
 Lesson 6

IMPORTANCE OF
ENTREPRENEURSHIP
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 IMPORTANCE OF ENTREPRENEURSHIP

CONTRIBUTION OF
ENTREPRENEURSHIP

FILIPINO PEOPLE LOCAL COMMUNITY PHILIPPINE ECONOMY

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THE FLOW OF ENTREPRENEURSHIP BENEFITS

 IMPORTANCE OF ENTREPRENEURSHIP
TO THE FILIPINO PEOPLE

1. IT PROVIDES GUIDELINES IN THEIR WEALTH CREATING

VENTURES.

2. IT HELPS IMPROVE THEIR FINANCIAL AND SOCIAL LIFE.

3. IT HELPS BROADEN THEIR CREATIVITY.

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4. IT HELPS MAKE THEIR LIVES HAPPY, FRUITFUL , AND

SUCCESSFUL.
 IMPORTANCE OF ENTREPRENEURSHIP
TO THE LOCAL COMMUNITY

1. It provides employment in the community.

2. It creates new demand in the market.

3. It makes substantial contribution to the raising and

collection of taxes.

4. It facilitates the movement of the factors of production.

5. It creates new business opportunities.

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6. It promotes a peaceful and loving community.

7. It increase constructive competition.

 IMPORTANCE OF ENTREPRENEURSHIP
TO THE PHILIPPINE ECONOMY

1. It encourage competitiveness and thereby to the Philippine

Economy :Improving their products and services.

2. It helps find an entrepreneurial niche in the world market.

3. It helps hasten the economic recovery process of the

Philippine during financial turmoil or crackdown.

4. It facilitate the smooth flow of money in the local market.

5. It assists the national government in its desire to have

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favorable economic ratings in the world market.