ENTREPRENEURSHIP

Entrepreneurial
Leadership in an
Organization
Definition and Concept 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".
The Essentials of Entrepreneurship
(2016) emphasized that an entrepreneur
is not an innovation but an organization
builder or one who has the skill to build
an organization. Peter F. Drucker
stressed that an entrepreneur as one
who always searches for change,
responds to it and exploits it as an
opportunity. INNOVATION is the specific
tool of entrepreneurs by which they
exploit change as an opportunity for a
different business or service.
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 - controlling a situation by making things to

happen or by preparing for possible future problems.
COMMON COMPETENCIES
IN ENTREPRENEURSHIP
6. Risk Taker they have the courage
to pursue their business ideas.

7. Innovative the entrepreneurs have

big business ideas and they do not
 stop improving and thinking of new
worthwhile ideas for their 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 - Entrepreneurs constantly look 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.
 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.
 TYPES OF ENTREPRENEURS
2. Imitating Entrepreneurs - They are those
who don't create new things but only follow
the ideas of other entrepreneurs.
3. Fabian Entrepreneurs - They are skeptical
about changes to be made in the
organization.
They don't initiate but follow only after they
are satisfied.
 TYPES OF ENTREPRENEURS
4. Drone Entrepreneurs - They are those who
lives on the labor of others. They are die-hard
conservatives even ready to suffer the loss of
business.
5. Social Entrepreneurs - They are those who
initiate changes and drive social innovation
and transformation in the various fields such
 TYPES OF ENTREPRENEURS
as education, health, human rights,
environment and enterprise development.
SUCCESSFUL
ENTREPRENEURS IN THE
PHILIPPINES
1. Manuel "Manny" Villar
is a Filipino Billionaire
businessman with a net
worth of $1.65 B. Villar
is the chairman of
STARMALLS and VISTA
LAND AND LANDSCAPES.
SUCCESSFUL
ENTREPRENEURS IN THE
PHILIPPINES
2. Lucio and Susan Co
has a net worth of $1.8
B. They are the owners
of PUREGOLD Price Club
store. The family has
interests in gaming,
hotels and wine
distribution. Lucio is the
SUCCESSFUL
ENTREPRENEURS IN THE
group's chairman, Susan
serves as the vice
chairman, while their son
Vincent serves as the
President.
PHILIPPINES
3. Ramon Ang is the
President and Vice
Chairman of one of the
nation's oldest
SUCCESSFUL
ENTREPRENEURS IN THE
conglomerates, SAN
MIGUEL with a net worth
of $2.3 B. He also owns a
hotel with 100 acres of
prime real estate. Ang
started out by fixing and
selling used Japanese car
and truck engines later,
with Eduardo Cojuangco,
SUCCESSFUL
ENTREPRENEURS IN THE
now a billionaire, he sold
aluminum wheels.
PHILIPPINES
4. Andrew Tan is a
Chinese-Filipino
billionaire with business
interests in liquor, fast
food, and real estate. He
is one of the top richest
Filipinos according to
SUCCESSFUL
ENTREPRENEURS IN THE
Forbes with a net worth
of $2.5 B.
Tan runs the Alliance Global Group
Inc. (AGI) composed of companies:
Megaworld Corporation, EMPERADOR
Distillers, Inc., and Golden Arches
Development Corporation that
operates MCDONALD'S FRANCHISES.
PHILIPPINES
SUCCESSFUL
ENTREPRENEURS IN THE
5. Tony Tan Caktiong is
the man behind the
country's famous bee.
He is a Chinese-Filipino
Businessman and the
founder of
Filipino Fast Food Chain
JOLLIBEE with a net worth of
$3.4 B. Caktiong founded
Jollibee in 1978 after
SUCCESSFUL
ENTREPRENEURS IN THE
having started it as an ice
cream parlor in 1975.
PHILIPPINES
6. George Ty is a Filipino
banker and businessman
with a net worth of $3.6
B. He is the founder of
Metropolitan Bank and
Trust Company (MBTC).
He was also the owner of
SUCCESSFUL
ENTREPRENEURS IN THE
the G.T. International
Tower in Makati, as well
as the owner of hotels
under GRAND HYATT and
MARCO POLO Brands.
 SUCCESSFUL ENTREPRENEURS IN THE
PHILIPPINES
7. David Consunji was born to a middle
class family in Hermosa, Bataan. Consunji is
the founder of DMCI Holdings, Ine with a
net worth of $3.68 B. He started his
construction business as nothing more than
a small contractor in 1954. He was a former
secretary of Department of Public Works,
Transportation from 1970-1975 during the
Marcos Administration. He also has stakes
SUCCESSFUL ENTREPRENEURS IN
THE
in the country's largest coal miner, listed
subsidiary, SEMIRARA MINING.
PHILIPPINES
8. Jaime Augustus Zobel de Ayala is the
Chairman and Chief Executive
Officer (CEO) of Ayala Corporation
with a net worth of $3.7 B. He
succeeded his father as the
company's President and CEO in
SUCCESSFUL ENTREPRENEURS IN
THE
1994. Zobel is also the Chairman of
GLOBE Telecom, BANK OF THE
PHILIPPINE ISLANDS (BPI), and
Integrated Micro-electronics Inc.
(IMI). He also serves as Co-Vice
Chairman of Mermac, Inc.
PHILIPPINES
9.Lucio Tan was once the longest running richest man
in the Philippines not until his great rival, Henry Sy
SUCCESSFUL ENTREPRENEURS IN
THE
took over the throne. Tan is a Chinese-Filipino
billionaire with a net worth of $4.2 B. He has interests
in airline, banking, tobacco, liquor, real estate
industries and education. In 1966, Tan started his own
cigarette company named Fortune Tobacco. He also
established and put up Asia Brewery in 1982. Now a
subsidiary of LT Group, the brewery was the only one
then to compete with the market leader San Miguel.
Also, in 1993, Tan secured control of the country's
airline carrier PHILIPPINE AIRLINES ( PAL ).
SUCCESSFUL ENTREPRENEURS IN
THE
PHILIPPINES
10. Enrique Razon Jr. is a Filipino billionaire with a net
worth of $4.3 B. Razon is also known as "Ports King",
since his knowledge on how to control of where to put
a port is, used him as a key to becoming one of the
country's richest business tycoons. His investments
came from their family business, the International
Container Terminal Services (ICTSI), which is the
largest port operator in the Philippines. Razon serves
SUCCESSFUL ENTREPRENEURS IN
THE
as the Executive Chairman and Chief Executive
Officer of Bloomberry Resorts Corporation. He is also
the Chief Executive Officer and President of
INTERNATIONAL CONTAINER TERMINAL SERVICES,
INC.
PHILIPPINES
11. John Gokongwei is the second richest Businessman
in the
SUCCESSFUL ENTREPRENEURS IN
THE
Philippines with a net worth of $5.5 B. He was born in
China to a Filipino-Chinese father who was a scion of a
wealthy Cebu-based family. Unfortunately, at the age of
15 he had to work to provide for his family since they
became flat broke. He sold roasted peanuts and opened
up a small stall in the market. He even sold soap,
candles, and threads to earn money. Fortunately, with
his determination, JG
Summit Holdings, Universal Robina Corporation,
Robinsons
SUCCESSFUL ENTREPRENEURS IN
THE
Corporation, and CEBU PACIFIC are all Gokongwei's
fruits of labor.
PHILIPPINES
12. Henry Sy has a net worth of $18. He is a Chinese-
Filipino businessman and the founder of SM PRIME
HOLDINGS. In 1958, Sy opened the first Shoe Mart
store and has since evolved into a dynamic group of
companies with five lines of businesses-shopping
malls, real estate development and tourism, retail,
SUCCESSFUL ENTREPRENEURS IN
THE
financial services, hotels and conventions. Forbes
Magazine listed him as one of the richest man in the
Philippines for ten years in a row.
 TOP 1 SUCCESSFUL SOCIAL
ENTREPRENEUR
IN THE PHILIPPINES
Jaime Aristotle B. Alip is a Social Entrepreneur, and
the Founder and Managing Director of the CARD
MUTUALLY REINFORCING INSTITUTIONS, a group
of companies composed of a foundation, a bank, a
microinsurance, a development institute, and a
business development service. The companies were
established to empower poor women on the
 CHARACTERISTICS OF AN
countryside, to help alleviate poverty in the
Philippines. CARD is the largest microfinance institute
in the Philippines. Alip has won several awards for his
work, such as the prestigious Ramon Magsaysay
award in 2008 for public service.
ENTREPRENEUR
1.Vision. An entrepreneur has a dream and he visualizes
the ways and means to achieve dream.
 CHARACTERISTICS OF AN
2.Confident. It is a hallmark of the entrepreneur. Many
gain their sense of self-esteem and faith in their ability to
face challenges and by seeing the results and gaining the
praise and respect of others.

3.Feels a Sense of Ownership. Uses individual

accountability in the ultimate pursuit of profitability,
teamwork, and overall success.
ENTREPRENEUR
 CHARACTERISTICS OF AN
4.Able to Communicate. Communication is the key to
successful relationships with people. The entrepreneur
develops a keen ability to listen and hear what others are
trying to say, because the best communications got that
way by first being the best listener.

5.Team Player. By employing the physics of interpersonal

synergy and dynamic relationships. One twig can be
easily snapped, but a bundle of those small twigs
 CHARACTERISTICS OF AN
becomes stronger than the sum of its individual parts and
can be impossible to bend, much less break.
ENTREPRENEUR

6.System-Oriented. Good systems allow us to reproduce

great results every time with less and less exertion of
energy or resources. Designing, implementing, and
perfecting systems is one of the most useful and
rewarding skills of an entrepreneur.
 CHARACTERISTICS OF AN
7.Dedicated. Entrepreneurs dedicate themselves to the
fulfillment of their plans, visions, and dreams, and that
tenacity of purpose generates electricity throughout the
whole organization.
 CHARACTERISTICS OF AN
ENTREPRENEUR
8.Grateful. Being grateful for what the entrepreneurs have
opens us up to receive more, and one reason that is true is
because those who are grateful appreciate what they are
given.

9.Optimistic. A positive outlook is essential for the

entrepreneur, who learns to see setbacks as bargain
priced tuition for the valuable business lessons gained
through firsthand experience.

10. Knowledge. An entrepreneur has full knowledge about

all the technicalities of his business- be it technological,
operational, financial or market dynamic.
CHARACTERISTICS OF AN ENTREPRENEUR

11. Desire to Succeed. An entrepreneur has a strong

desire to succeed in life. Their dreams are not just limited
to achieving one single goal but they constantly work to
achieve higher goals.

12. Passion for the Business. It is where the

entrepreneur's belief that the business will positively
influence people's lives. For social entrepreneur's passion
is what drives them to bring about the change that they so
desire in the environment or social aspect.
CHARACTERISTICS OF AN ENTREPRENEUR
13. Money Management. Entrepreneurs start viewing money as
a resource.

14. Creative Thinking. This ability allows entrepreneurs to view

resources in a completely different aspect than normal individuals.

15. Positive Mental Attitude. No successful entrepreneur without

a positive attitude, if maintain confidence, persevere and continue
to stay positive, we will be successful; if allow doubt and
uncertainty to prevail, will probably fail.
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

entrepreneurships 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.
Let us apply what you’ve learned

Who among the successful entrepreneurs you admire most and

why? What specific characteristic you observe which makes
them successful?
ENTREPRENEURIAL TRAITS, QUALITIES, ANDS FUNCTIONS

1. Mental Ability consists of intelligence and creative thinking.

An entrepreneur should be intelligent and must have an
analytical mind and have the capacity to analyze the problem
under which decision have to be made.
2. Clear Objective successful entrepreneur must have the
objective to establish his product in the market, make profit and
render social service.
3. Business Secrecy an entrepreneur must be able to guard
business secrets. Leakage of business secrets to trade
competitors is a serious matter.
ENTREPRENEURIAL TRAITS, QUALITIES, ANDS FUNCTIONS

4. Human Relations Ability- an entrepreneur must have good

relations with his customers to earn profit and win their confidence
in his product. He must also maintain good relation with his
employees.
5. Effective Communication good communication means that the
entrepreneur has the ability to put his point effectively and with
clarity. Communication ability is the secret of the success of most
entrepreneurs.
6. Technical Knowledge - the entrepreneurs are dealing with
situations where sophisticated technology is involved. The
entrepreneur must have a reasonable level of technical knowledge
analyze the various aspects
ENTREPRENEURIAL TRAITS, QUALITIES, ANDS FUNCTIONS

7. Decision-making-the entrepreneur should have the

capacity to of the business for arriving at a decision.
8. Risk-bearing higher risk, higher profit; risk is inherent
and inseparable element of entrepreneurship. He assumes
the uncertainty of future.
9. Self-confidence entrepreneurs must have the mental
capacity to face any situations. They should also have the
ability to inspire other. They must have the confidence in
themselves and the determination to achieve their goals.
ENTREPRENEURIAL TRAITS, QUALITIES, ANDS FUNCTIONS

10. Highly Self-motivated - successful people go out into the world

and invoke change through their actions. Leaders enjoy challenges
and will work tirelessly to solve problems that confront them.
11. Serial Innovator entrepreneurs are almost defined by their drive
to constantly develop new ideas and improve on existing processes.
Successful people welcome change and often depend on it to
improve their effectiveness as leaders and ultimately the success of
their businesses as many business concepts rely on improving
products, services and processes in order to win business.
QUALITIES OF AN ENTREPRENEUR
1. Planner -entrepreneur has a strong desire to achieve a
higher goal and make their dreams come true. So the
entrepreneur must have these quality to achieve that target
an entrepreneur cannot achieve the target.
2. Technician -an an trepreneur must have the technical
knowledge. He should know how to use the resources and
achieve target.
3. Motivator -he inspires the employees to achieving the
target.
QUALITIES OF AN ENTREPRENEUR
4. Future Oriented entrepreneur shows a high level of
future orientation. They do not allow the past to obsess
them. They are oriented towards present and future.
5. Interpersonal Skills - an entrepreneur is a person who
during the course of his activities he should be a person
who likes working with people and who has skills of
dealing with people.
QUALITIES OF AN ENTREPRENEUR
6. Disciplined these individuals are focused on making
their businesses work, and eliminate any hindrances or
distractions to their goals.
7. Competitive many companies are formed because an
entrepreneur knows that they can do a job better than
another.
8. Creativity one facet of creativity is between able to
make connections and seemingly unrelated events or
QUALITIES OF AN ENTREPRENEUR
situations. They will repurpose products to market them to
new industries.
9. Determination entrepreneurs are not thwarted by their
defeats. They look at defeat as an opportunity for success.
Successful entrepreneurs do not believe that something
cannot be done.

10. Strong Work Ethics -successful entrepreneur will

often be the first person to arrive at the office and the last
QUALITIES OF AN ENTREPRENEUR
one to leave. Their mind is constantly on their work,
whether they are in or out of the workplace.
FUNCTIONS OF ENTREPRENEUR
1. Risk Taking and Uncertainty Bearing-the future is
unpredictable; the entrepreneur has to take risks in these
circumstances. Taking risks form an important
entrepreneurial function. Kinght defined entrepreneur as "the
economic functionary who undertakes such responsibility of
uncertainty. which by its very nature cannot be insured or
capitalized or salaried too."
2. Taking Business Decisions he has to formulate an action
plan to foster high quality on the product to be produced. He
has to evolve the best possible method of production which
would earn him sizeable profit.
FUNCTIONS OF ENTREPRENEUR
3. Managerial Functions the entrepreneur arranges finance,
purchase raw materials, provides the necessary infrastructure
for production. The entrepreneur has a multi-faced
personality when he undertakes managerial functions. He
provides a logical and scientific basis to the above functions
for the smooth operation of the enterprise thereby avoids
chaos in the field of production, marketing, purchasing,
recruiting and selection.
4. Decision Making Function the most vital function an
entrepreneur discharges; the selection of the best course of
action that bears greater benefit than sacrifice.
FUNCTIONS OF ENTREPRENEUR
5. Innovation -introduces far-reaching improvements in the
quantity and quality of production line and considers the
economic viability and technical feasibility of an innovation.
Entrepreneurs enhance the quality of consumers' lives by
introducing new products and services that solve problems.
and fulfill consumers' needs.

6. Coordination -involves selection of the right type of

factors, employment of each factor in the right quantity, use
FUNCTIONS OF ENTREPRENEUR
of the best technical devices, division of labor, and reduction
of waste.
7. Environmental Analysis classified as internal environment
are controllable; and external environment - are beyond the
control of the business.

8. Identifying Entrepreneurial Opportunity- an entrepreneur

has to keep his eyes and ears open and require imagination,
creativity and in formativeness.
FUNCTIONS OF ENTREPRENEUR
9. Turning Ideas into Action - an entrepreneur should be
capable of turning his ideas into reality; collects information
regarding the ideas, products, practices to suit the deman in
the market.

10. Organizational Function - entrepreneur as an organizer

and organizing function which brings together various factors
of production, ensures continuing management and renders
risk- bearing functions as well.
LET US APPLY WHAT YOU'VE LEARNED

Give at most three (3) names of entrepreneurs in your locality

that you know and identify what factor or factors that makes
him/her successful.
 COLLEGE OF TEACHER EDUCATION

CAGAYAN STATE UNIVERSITY

income statement

ROLES AND
ENTREPRENEURSHIP

IMPORTANCE OF
ENTREPRENEURS
ECONOMIC GROWTH
1. Employment Generation enterprise being established by
the entrepreneur grow provides direct and indirect
employment to many more. Entrepreneurship is the best
way to fight unemployment.

2. National Income entrepreneurship increases the national

income through generation of product and service both in
imports and exports.
income statement
3. Dispersal of Economic Power when the number of
entrepreneur increases, a large amount of national wealth
is also shared by a large number of entrepreneurs, thus
dispersing wealth. This dispersal of wealth promotes the
real socialism and makes the economy healthy.

4. Balance Regional Development the growth of industry

and business leads to a large number of public benefits
like road, transport, health, education, and entertainment.
A rapid development of entrepreneurship ensures a
balance regional development.
5. Economic Independence - entrepreneurship is
essential for national self-reliance.

6. Improvement in Living Standards entrepreneurs set

up industries which remove scarcity of essential
commodities and introduce new products.
income statement
income statement
7. Harnessing Locally Available Resources and
Entrepreneurship a few large scale industries started by
entrepreneurs from outside the state in economically
backward areas may help as models of pioneering efforts,
but ultimately the real strength of industrialization in
backward areas depends upon the involvement of local
entrepreneurship in such activities,
8. Innovations in Enterprise - business enterprises need to
be innovative for their survival and better performance.
Small firms are expected to result in more innovations and
make the industry compete in international market.
THE ENTREPRENEUR'S TASK
If all requirements in a capitalist economy are in place, the
entrepreneur can assume his assigned role in the
development in the economy. This made possible because
the surviving enterprises are responsible for providing the
following:
1. products and services for customers and producers:
2. employment;
3. taxes;
4. Demand for suppliers' products and services; and,
5. Training facilities for future entrepreneurs.