ENTREPRENEURSHIP MIDTERM REVIEWER

I. Lesson 1: Entrepreneurship
Overview Of The Definition
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 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 the researchers on entrepreneurship
are highly dependent on the theories and the contexts of the research
endeavors.

❖ ENTREPRENEURSHIP
➢ Is the art of observing correct practices in managing and operating
self-owned wealth creating business enterprise by providing goods and
services that are valuable to the customers.

❖ ENTREPRENEUR
➢ it is a person who organizes, operates, and assumes the risk of business
ventures. This venture is also called enterprise.

❖ SMALL BUSINESS
➢ refers to a business or enterprise that correctly adopts and practices
the principles of 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
and entrepreneurship.

5 SALIENT FEATURES OF ENTREPRENEURSHIP

❖ Art Of Correct Practices
- Entrepreneurship is an art and not a science. It is not governed by fix
and absolute rules, whereas science is. As an art, it is dynamic and closely
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related to creativity and the changes does not stop.
❖ Wealth-Creating Venture
- it is a business endeavor where the resources of the enterprise have
been utilized fully to maximize the investment of the entrepreneur. The
venture improves the life of the entrepreneur in terms of economic,
financial, and moral aspects.
❖ Provides Valuable Goods And Services
- valuable goods and services are highly satisfy the target buyers in terms
of quality and price. The entrepreneur convinces the consumers and they
gain more benefits than what they pay for the goods and services.
❖ Entails Opening And Managing Self-Owned Enterprise
- The entrepreneur opens his/her 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 enterprise
when the person managing it’s daily activities is also it’s owner.
❖ Risk-Taking Venture
- ”Risk is inherent in an entrepreneurial venture.” Risk comes
simultaneously with the venture. Risk cannot be detached from any
entrepreneurial venture.

II. Lesson 2: CHARACTERISTICS OF GREAT ENTREPRENEUR

❖ ACHIEVEMENT CLUSTER
➢ The achievement cluster consists of entrepreneurial character traits
that are directly related to the entrepreneurs desire to be an achiever
in the field of entrepreneurship.
➢ Successful entrepreneurs constantly set the things to be achieved and
repeatedly find ways to achieve them.
➔ An opportunity seeker -
➔ Committed
➔ Persistent
➔ A risk-taker, and
➔ Efficient and Quality oriented
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1. An opportunity seeker
- A person who dreams of becoming a successful entrepreneur must be a
seeker of business opportunities. He/she must possess the ability to
identify with great ease the most appropriate entrepreneurial
opportunities.
- A business opportunity-seeker is an entrepreneur who
➔ Sees and acts on new business opportunities; and
➔ Seizes unusual opportunities to obtain financing, equipment, land,
work, space, or assistance.
2. Committed
- A highly committed entrepreneur displays full commitment to the work
or endeavor that he/she is undertaking. He/she does not entertain
negativism and skepticism. Commitment is directly related to interest.
Lack of interest means lack of commitment.
3. Persistent
- trials, sacrifices, and failures challenge the entrepreneur to be
persistent. He/she learns to
➔ Take repeated or different actions in order to overcome the
obstacles
➔ Make personal sacrifices or exert extra ordinary effort to
complete the required task and
➔ Sick to his/her own judgment in times of opposition and failure
4. A risk-taker
- Successful entrepreneurs are business risk-takers. No one can predict
exactly what will happen tomorrow. Risk inseparable from
entrepreneurship. It is entrepreneurial ventures.
- THERE ARE THREE TYPES OF RISK-TAKERS:
➔ An aggressive risk-taker is not scared to take any risks in business
➔ A moderate risk-taker is more calculative in taking risks. He/she
analyzes the situation before taking the leap.
➔ A conservative risk-taker is not very eager to take any kind of
risk. He/she is satisfied with managing a small business and a
regular clientele.
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5. Efficient and Quality oriented
- A successful entrepreneur highly values efficiency and the concept of
quality in all business undertakings. He/she
➔ Always perform the required tasks in accordance with existing
standards of excellence or continuously improves on his/her past
performance
➔ Strives to do things better and faster with minimal cost

❖ PLANNING CLUSTER
➢ is a set of characteristics of successful entrepreneurs that basically
supports the character traits in the achievement cluster.
➢ THE ENTREPRENEUR WHO BELONGS TO THE PLANNING CLUSTER
IS:
➔ A goal setter
➔ An information seeker
➔ Systematic in planning and monitoring

1. A goal setter
- Goals and objectives are the guiding points that directs all actions,
efforts and struggles of the entrepreneur. Being a goal setter, a
successful entrepreneur sets clear, specific, and well defined
short-and-long term goals and objectives.
- In setting the goals and objectives of the business venture, the
entrepreneur is usually guided by the SMART principle.
➔ S- specific
➔ M- measurable
➔ A- achievable
➔ R- realistic
➔ T- time bound

2. An information seeker
- Entrepreneurs constantly making decisions that will affect the
operations of their business ventures. These must be based not on their
whims and caprices but on specific and relevant, economic, financial, and
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industry data. Successful entrepreneurs, in other words, primarily seek a
strong basis to make sound decisions.
3. Systematic in planning and monitoring
- An entrepreneur plans for whatever he/she expects in the business.
He/she does not leave things to luck. He/she plans by breaking large
tasks down into small once and puts time limits against them. Since and
entrepreneur knows what to expect at anytime he/she is able to change
plans and strategies to achieve what he/she aims at.

❖ POWER CLUSTER
➢ The power cluster includes a set of character traits that reflect the
degree of the interpersonal relations maintained by successful
entrepreneurs in the community. The power cluster refers to the
relationship and image of the entrepreneur in the community.
➢ An entrepreneur in the power cluster is:
➔ A persuasive and positive networker
➔ Self-confident

1. A persuasive and positive networker

- Successful entrepreneurs are persuasive and can easily influence and win
over to their side the other stakeholders in business such as customers,
suppliers, and prospective creditors.
- As a persuasive and positive networker, the successful entrepreneur
usually
➔ Adopts specific strategies that will influence and convince others
while maintaining the highest degree of respect
➔ Makes use of positive contacts in the business and community in
order to meet the goals and objectives of the business endeavor.
2. Self-confident
- Successful entrepreneurs are known to have a high level of
self-confidence. They project a favorable image of themselves which is
founded on respect and good deeds in the business community.
Entrepreneurial self-confidence is actually a manifestation of the
entrepreneurs strong trust or belief in himself/herself.
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OTHER FACTORS TO CONSIDER
❖ Personal Interest
- The personal interest of the individual is a deciding factor in getting into
business. His personal interest will drive him to engage into something
that will give him satisfaction.
❖ Knowledge/Talents
- The skills or talents or knowledge of an individual serve as his best asset
in venturing into something that will earn him an income.
❖ Training/Work Experience
- The kind of training or experience of an individual influences his desire
to go into business/. Children of entrepreneurs eventually become
entrepreneurs themselves.
❖ Government Support/Assistance Programs
- The goal of any government is economic development. This is done
through investment, business, an employment. Thus, support is available
in terms of technology, marketing, or training.