Ave Maria College

SENIOR HIGH SCHOOL DEPARTMENT

School ID No. 402686 Gov’t Permit No. 0059 s. 2015
AS ENT G121- ENTREPRENEURSHIP

LESSON 1: INTRODUCTION TO ENTREPRENEURSHIP

A. Concepts of Entrepreneurship

The word “entrepreneur” was derived from the French verb enterprendre, which means “to undertake.” This is
pinpointing to those who “undertake” the risk of enterprise. The enterprise is created by an entrepreneur and the process is
called “Entrepreneurship.” Entrepreneurs are innovators. They are willing to take the risks and generate unique ideas
that can provide profitable solutions to the needs of the market and the society.

B. Factors Affecting Entrepreneurship

1. Personality Factors which include:

a. Initiative-doing things even before being told.
b. Proactive- which means he can classify opportunity and seize it.
c. Problem solver- which means he can retain good relations with other people.
d. Perseverance- meaning he will pursue things to get done regardless of challenges.
e. Persuasion- means that he can entice people to buy even if they don’t want to.
f. A planner- he makes plans before doing things and does not fail to monitor it.
g. Risk-taker- which means that he is willing to gamble but he will calculate it first.
2. Environmental Factors which include political, climate, legal system, economic and social conditions and
market situations.

C. Common Competencies in Entrepreneurship

1. Decisive- an entrepreneur must be firm in making decisions.

2. Communicator- an entrepreneur must have a convincing power.
3. Leader- an entrepreneur must have the charisma to be obeyed by his employees.
4. Opportunity seeker- an entrepreneur must have the ability to be the first to see business chances.
5. Proactive- an entrepreneur can control a situation by making things happen or by preparing for
possible future problems
6. Risk Taker – an entrepreneur has the courage to pursue business ideas.
7. Innovative - the entrepreneur has big business ideas and he does not stop improving and thinking of
new worthwhile ideas for his business.

Core Competencies in Entrepreneurship

1. Economic and Dynamic Activity - Entrepreneurship is an economic activity because it involves
the creation and operation of an enterprise with a view to creating value or wealth by ensuring
optimum utilization of limited resources.
2. Innovative – The entrepreneur constantly looks for new ideas, thus he needs to be creative.
3. Profit Potential - The entrepreneur can be compensated by his profit coming from the operation.
4. Risk bearing – The entrepreneur needs to gamble but wise enough to offset the risk.

Relevance Of Entrepreneurship to An Organization

1. Development of Managerial Capabilities - this means that one of the benefits an entrepreneur
gets is to develop his managerial skills.
2. Creation of Organizations - which means that because of entrepreneurship many organizations
will exist.
3. Improving Standard of Living - this means that entrepreneurship can lift up the economic
status of an individual.
 4. Means of Economic Development - this means that not only the life of the entrepreneur is
improved but also the society where the business is located

D. Types of Entrepreneurs
1. Innovative Entrepreneurs - They are those who always make new things by thinking of new ideas.
They have the ability to think newer, better and more economical ideas.
2. Imitating Entrepreneurs - They are those who don’t create new things but only follow the ideas of
other entrepreneurs. Fabian Entrepreneurs - They are skeptical about changes to be made in the
organization. They don’t initiate but follow only after they are satisfied.
3. Drone Entrepreneurs - They are those who live on the labor of others. They are die-hard conservatives
even ready to suffer the loss of business.
4. Social Entrepreneurs - They are those who initiate changes and drive social innovation and
transformation in the various fields such as education, health, human rights, environment and enterprise
development.

Good Qualities of Entrepreneur

1. Risk Taker: Entrepreneurs never doubt investing because they are open-minded to whatever untoward
things that may happen and they likewise consider constraints as challenges.
2. Goal-Oriented: Entrepreneur’s plan and set a goal because their goal means so much, leading them to
strive so hard to attain it.
3. Persistent and hardworking: Entrepreneurs are not easily discouraged. They pursue their goals even in
the face of adversity and hostile circumstances. They can talk in a way that excite or motivate people.
4. Full of Energy: They do not get tired easily no matter how tedious the work is. They continuously smile
and talk with energy and can influence and inspire people.
5. Open to criticism: They take suggestions and feedbacks positively. They view criticism as
circumstances to make them good and better next time.
6. Responsible: They do not believe in luck or faith. They know how to carry out important actions or
deals. They do what they promise.
7. Confident and Self-reliant: Money, friends, and contacts are just support for them. They believe in
themselves without a doubt.
8. Knowledgeable: They are experts in their own line of occupation. Education is not a question as long as
they continually learn about the business.
9. Human Management Ability: They manage their people in a way they would be willing and are able to
do things for them without hesitation and without fear. They know how to consider the needs of the
people under their care and make sure that they get what these people deserve. They believe that if their
people are happy, they will be productive and work with all honesty and respect.
10. Innovative: They are creative because they believe that there are always new and better ways of
presenting things. They always dare to be different in packaging and selling their merchandise.
11. Achievement-Oriented: They want to see the result of their labor. They are not only interested on how
they are going to start but also in the process of how to attain their goal. Excellence is their standard in
doing their work.

Career Opportunities of Entrepreneurship

1. Business Consultant - with the expertise of in the field of entrepreneurship, he can be a very good
source of advices to other entrepreneurs and would be business men.
2. Teacher - a graduate of an entrepreneurship can use his knowledge in teaching.
3. Researcher - the entrepreneur can be employed as a researcher by an enterprise.
4. Sales - the entrepreneurship graduate can apply as a salesman.
5. Business Reporter - the entrepreneur being expert in the field, can be employed as a business reporter.

E. Importance of Entrepreneurship
Entrepreneurship is very important to every nation for the following reasons:
1. It generates/provides employment
Since business needs people who will work for them, entrepreneurs will have to hire manpower to
operate their business. This offers opportunity for unemployed citizens to land a job. Bigger companies
generally provide greater salaried to compensate work.
2. It helps in the economic growth of the country
Developing small entrepreneurs can contribute greatly in the economic development of the country.
More successful entrepreneurs mean more taxes are collected and used by the government for the
 improvement of government services such as hospitalization, infrastructures, and education, to name a
few.
3. It eradicates poverty
With more employment and a better economic growth in the country, citizens will have a better standard
in living. This means that poverty will already be minimized, or will totally be eradicated.
4. It improves our social image across the country
Good entrepreneurship image makes the country a better picture to other countries. This economic
condition is then reflected to a better social condition all throughout the county. Entrepreneurial skills
also improve most Filipinos who were not equipped with formal education, hence lesser number of
Filipinos would go abroad for work reasons.

F. Role of the Government in Entrepreneurship

The government plays a very important role in determining the success of a business. With a proper and
adequate assistance programs, the government can develop a larger entrepreneurial economy.

1. Maintain Peace and Order The government sees and assures peace in all regions to
prevent rebellions that would shatter the flow of business.

2. Maintain Political Stability Businesses are stabilized if there is no frequent change in

government policies.

3. Monitoring Price Stability The government policies prevent the abrupt changing of
prices because it will be difficult for investors to plan costs
of production and project profit when prices are
fluctuating.

4. Taxes The government makes tax programs based on the ability

to pay scheme since tax incentives encourage
entrepreneurs.

5. Infrastructures Develop and improve roads, bridges, transportation, and

communications because these contributes to the fast and
convenient way of transporting and delivering products to
consumers.

6. Provide Education and Training Money, machine and materials are productive if the
entrepreneurs are educated and trained so that they will
enhance their skills and talents. Train the entrepreneur’s
properly for real development is people development.

7. Public Administration Simplify business requirements and place these

government offices in an accessible and permanent
location with efficient and courteous employees.

8. Production Technology Technology and livelihood resource centers should be

accessible to the masses at a minimal price if not for free
for a spring and practicing entrepreneurs.

9. Marketing Assistance Encourage the poor to become entrepreneurs and provide

assistance in the form of promotions, identification of
buyers, and ways of reaching buyers.

10. Financial Assistance Provide adequate and cheap credit facilities for the
aspiring entrepreneurs.