Fundamentals of

Entrepreneurship
WENNIELYN JAVIER.MBA
Instructor
 MODULE 1
The Concept of Entrepreneurship

(Source: https://pixabay.com/illustrations/teamwork-hr-management-team-people-4173707/)
 Introduction
The Philippines is a haven for the development of young entrepreneurs.
As a developing country, its resources are varied 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 to 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 new
ways of making living.

(Source: https://pixabay.com/illustrations/business-money-casting-plant-3462518/)
Topic Outline
1. The Entrepreneur
2. Factors that Develop Entrepreneurial Activities
3. The Making of a Filipino Entrepreneur
4. The Challenges for Entrepreneurship
5. The Starting Point to Entrepreneurial Success
6. Entrepreneurial Management Demands
7. Profile of a Successful Entrepreneur

(Source: https://www.needpix.com/photo/914323/entrepreneur-digital-marketing)
Learning Objectives
• Described the key concepts in the making of an
entrepreneur;
• Discuss the factors to develop entrepreneurial activities
and successes; and
• Discuss the development and challenges of
entrepreneurship.
THE ENTREPRENEUR
ENTREPRENEURSHIP
It is a science of converting processed ideas 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 definition implies
that an enterprise is at work whenever an individual takes the
risks and invests resources to make something unique or
something new, designs a new way of making something that
already exists, or creates new markets.
ENTREPRENEUR
An entrepreneur is an individual who is alert to profitable
opportunities for the exchange of goods or services. A street
vendor in Divisoria takes the opportunity to make profit by selling
school supplies during the opening of the school. During
Christmas, he or she takes the opportunity of selling Christmas
items and in other occasions, sell clothing apparels at different
seasons. A cell-phone repair man takes the opportunity of servicing
various cellular owners who cannot afford to buy new models.
An entrepreneur is one who organizes, manages, directs and
assumes the risks of a business or enterprise. Being an
entrepreneur is a lifestyle or an attitude. It is not a calling for
everyone, but rather a choice.
ENTREPRENEURIAL SKILLS
AND COMPETENCIES
The entrepreneurial 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
risk and invests his personal talents and resources to make
something new or different as costumers like to buy new and
improve products.
THE ENTREPRENEUR IS GOAL-DRIVEN
An entrepreneur is goal-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 the risk he
foresees while planning the activities and programs in the
operation of the enterprise. He accepts challenges and
responsibility for results. He makes sure that people work
based on specified work programs and schedules.
THE ENTREPRENEUR IS A MARKETING MAN
The marketing environment is identified by the
entrepreneur and thus, he marshals his resources to pursue the
opportunities and makes immediate action to exploit his personal
gain. The needs and wants of costumers are properly identified
and these are propelling reason for him to take the opportunity to
make profit. He takes the lead for innovation and makes
modifications to make the costumer aware that his product or
service is more superior to those offered by others.
THE ENTREPRENEUR STARTS
SMALL TO BECOME BIG
Many entrepreneurs start small 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 entrepreneur is a dynamic process and 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
methodical 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 solutions.
Entrepreneurship is a process that can be developed, learned and nurtured.
ENTREPRENEURSHIP AS A
DYNAMIC PROCESS
Entrepreneurship is a dynamic process of innovation and the
establishment of new opportunity for the creation of new venture.
The small business owner entrepreneur in the sense is self-
employed and is different from an innovator entrepreneur. The real
entrepreneur 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 definite advantage over the
others in their line of business. 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 this business while
the latter is an entrepreneur.
FACTORS THAT DEVELOP
ENTREPRENEURIAL
ACTIVITIES
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
vitality he plunges a profitable operation.
ORGANIZATION OF CAPITAL
RESOURCES
While talents and ambition are great resources of the
entrepreneur, financial and human resources are important
ingredients in the start of the 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.
THE DEVELOPMENT OF
ADMINISTRATIVE MACHINERY
The management is developed with organizational
structure based on the need 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 and not on personal connection with the
entrepreneur.
THE DEVELOPMENT OF
ENTREPRENEURIAL AUTONOMY
The entrepreneur develops autonomy in the operation of
the enterprise as he takes the lead in all the activities of the
organization especially in the early stage of operation. His
venture capitalized as he knows best the direction of the
enterprise as he is aware of the calculated risk involved. Locus of
cost control must be in his hands.
THE DEVELOPMENT OF SWOT ANALYSIS
The avoidance of risk can be taken with careful analysis of
the Strength, Weaknesses, opportunities ang Threats of the
organization. The entrepreneur must see the environment of the
enterprise based on SWOT analysis so that the risk 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 procedure and tends
to revise them to solve existing problems.
4. He find 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 angels and finds means to 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.
4. The innovator entrepreneur is interested in the end results rather than the
means to achieve it. He has little tolerance for details and routine work.
5. He capitalizes on people with bright ideas and talents and gets their opinion
and consensus and with little regard for people with mediocre ideas.
 THE MAKING OF A
FILIPINO ENTREPRENEUR
THE MAKING OF A FILIPINO ENTREPRENEUR
The making of a Filipino entrepreneur is a process of trial and
error. The colonization of the Filipino for more than 300 years is a
great factor in the slow development of entrepreneurial activity in
the country. Our concept of owning a small business like a sari-
sari store, or a small tailoring shop, or a repair shop or market
distribution outlet already makes the person an entrepreneur.
While this concept is true to certain extent, entrepreneurship is
more than being self-employed and making a living out of the
income to support family needs or a little of their wants.
 The success of Filipino entrepreneur stands in a very shallow
foundation. Most Filipino business starts on a copy-cat syndrome.
For example, Maria will start a sari-sari store and here comes
Pedro seeing the flourishing business of the Maria, opens store
opposite the other corner. Juana starts a barbeque stand on the
corner and Petra with another outlet offering another variety of
street foods. This is the scenery in most Philippine business
condition.
 The food business outlet is one of the most abused and most
prominent activities of some Filipino business entrepreneurs,
including that of small outlet in the distribution of basic grocery
and other items called sari-sari store or in some cases mini—
grocery stores. Some enterprising outlets 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 a copycat. While we

consider the success of Jollibee Corporation in the food industry, the founder is
not a true Filipino in strict sense of his origin. He has a Chinese blood, which he
inherited his business acumen from his parents who knew how business grow
and prosper.
He started with an ice cream stand and later made it into an outlet for
chicken joy and other food items that answer the Filipino taste buds especially
for children. His success was based on his talent for innovation and finding a
business that make him a multi-millionaire.
THE FOUNDATION OF NATIONAL BOOKSTORE
The making of National Book Store is not a myth of 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 while in high school but
because of her persistence and perseverance, she graduated with honors. Being a
working student was not a hindrance to her education as she painstakingly 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 rudiments of book business. Learning the hard way in not
an easy task and starting a business empire of national 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 and 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 at Rizal
Avenue in Santa Cruz, Manila where a 9-story was built. They built a building
complex in Pasig where printing and other services are being made.
With the help of their children, they went into vertical expansion by
establishing printing press to print local books and other office forms and
supplies, 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 jeepney business is the making of a Filipino entrepreneur. Sarao
jeepneys abound in all terminals during the early period of transport development in the
country until copy-cats made jeepneys of similar styles. Leonardo Sarao, the jeepney
king, started the business by being a helper mechanic until he established his repair
shop from meagre capital.
He then started buying second hand parts and engines from Japan and built
jeepneys that abound in most streets of the Metropolitan Manila and its suburbs. He
established jeepney 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 his children became professionals and
are now 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 these few successful entrepreneurs was built with
entrepreneurial genius founded on slow and painstaking hard
work. Their personal objective is not only to generate money to
sustain basic needs or wants but the greater drive for personal
fulfilment.
THE CHALLENGES FOR
ENTREPRENEURSHIP
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 activity is based on the inner compulsion to achieve the undeterred
difficulties. The values and character of JUAN TAMAD has no place in the world of
entrepreneurial vocabulary.
1. The new entrepreneur must be a doer and willing to 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 exploration of the total business
environment must be put into total perspective as it interplays with the development
of new opportunities and the risk 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 in direct control of operation and not in indirect control.
He must be able to measure the desired results. 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 ideas.
His 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, organizes, directs and controls the
physical and material resources under his disposal. Many entrepreneurs are describing
to have shrewd judgment in character that induced them to see things the way it should
be. An entrepreneur has a passion for excellences and mediocre performance 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, spent 75 percent in planning innovations and
putting them into action. 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 Trophy of
accomplishment equipped with inner drive in transforming idea 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 surpass the factor of risk.
 THE STARTING POINT TO
ENTREPRENEURIAL SUCCESS
THE STARTING POINT TO ENTREPRENEURIAL SUCCESS
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 is good only until the 15th
and end of the month. Never have we found an ordinary employee who gets rich
except those who are connected with the government and amass wealth through
graft and corruption.

You may start an employee, get new ideas and develop your own
entrepreneurial style from experience and education. Start dreaming and be
independent. Learn to save money and be sure to pit 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 for success.
2. Explore the business environment.
The Philippines being a haven of opportunities is wide open for
people who dream to be rich and amass fortune as we have all the
natural resources. Find the 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
service.
With the talent you acquire in conducting feasibility studies in your
college days or those that you learned from experience, apply your
knowledge in SWOT analysis. Consider opportunities for expansion as
business growth is possible under good management.
3. Be in control.
The entrepreneur must be in the driver seat of his business. You cannot
trust your business to somebody who does not own the ideals and
aspiration of the enterprise. Be in control of the operation as you develop
people whom you can work with dedication 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 desire burning for success with
their accomplishments. Make them partners in decision making and
develop their ego needs for proper 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 trusted financial adviser.
While you, as an entrepreneur and busy with the management of the
business, a good accountant or financial adviser is needed to help you out in the
financial activities of the enterprise. They can help you re-invest your money to
other profitable operation.
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 transaction involving money and its disbursements.
While you economize your expenditure, be sure that every peso is spent wisely
without sacrificing quality in products or service.
5. Seek the advice of professionals.
You are not a superman to know all the legal and other matters related to
the operation of the enterprise. Seek the services of a legal consultant on
matters with legal implications. Have your income tax prepared by good
accountant lawyers or certified accountant on matters with legal implications.
Have your income tax prepared by good accountant lawyers or certified
accountants that know how to deal with government regulating body in terms of
tax payments.
 ENTREPRENEURIAL
MANAGEMENT DEMANDS
ENTREPRENEURIAL MANAGEMENT DEMANDS
Many successful entrepreneurs in the Philippines and those in
foreign countries are not graduates of well-known schools of
management. Most entrepreneurs came from scratch and have acquired
managerial expertise in making business empires through shared hard
work and dedication. They possess characteristics and intelligence to
make things happen rather than wait for things to happen.
1. The entrepreneurs is alert to opportunities and perceptive to
make things happen.
The entrepreneur looks at things much ahead of other people. He
sees things in different way and develops strategies to make things
happen the way he perceived it to be.
2. The entrepreneur has the health and endurance to work long hours
The dreamer entrepreneur could not stop working until he finds solutions to
his perceived idea.
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 senses some danger zone with on his plans and
programs.
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.
5. The entrepreneur seeks others’ opinion or makes researches.
He believes that a person who asks questions could only be fool for a
minute but one who asks no question could be fool for a lifetime.
PROFILE OF A SUCCESSFUL
ENTREPRENEUR
PROFILE OF A SUCCESSFUL ENTREPRENEUR
Successful people in the field of business are creators of things with
difference. They are no ordinary Juan Dela Cruz who we can be seen around
the corner.
Most successful entrepreneurs are described to possess the following profiles:
1. The entrepreneurs 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.
2. The entrepreneur develops strong drive to succeed.
Success is for people with the profound need to achieve their dreams and
life aspiration. Achievements are the ego of people with the inner desire for
independence.
3. The entrepreneur has strong determination in decision making.

The strong personality of the entrepreneur carries with it the power to make
decisions. He is aware of developing new markets and creates new things to satisfy
costumers’ needs and wants.
4. The entrepreneur develops feedback mechanism for results.

The development of feedback mechanism is important factor in the development of

successful business entrepreneur. He goes back to where he starts and finds out things
the way they are.
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.