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SAINT TERESA ACADEMY INC.

Catagbacan Norte, Loon, Bohol
Email: [email protected]
Tel: (038) 505-8006
Member: CATHOLIC EDUCATIONAL ASSOCIATION OF THE PHILIPPINES (CEAP)
BOHOL ASSOCIATION OF CATHOLIC SCHOOLS (TAGBILARAN)

QUARTER 1

CONTENT STANDARD:
The learners demonstrate understanding of key concepts, underlying principles, and core competencies in
Entrepreneurship.

PERFORMANCE STANDARD:
The learners independently creates/ provides a quality and marketable product and/ or service in
Enterpreneurship.

NAME OF STUDENT

Unit Topic: Introduction to Entrepreneurship

Lesson 1: Relevance of the course
Key concepts and common competencies
Core competency in Entrepreneurship
Career opportunities
Class Duration: 4 hours
Most Essential Learning Competencies:
 Discuss the relevance of the course
 Explain the key concepts of common competencies
 Explain the core competencies
 Explore job opportunities for Entrepreneurship as a career.
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PREFACE

The course on entrepreneurship has been designated as an applied track subject in Senior High
School. As described by the curriculum crafters of the (DepEd), the subject on entrepreneurship “deals with the
concepts, underlying principles, processes, and implementation of a business plan.” Pathways to
Entrepreneurship lays down the significance of the role of entrepreneurship in generating employment, income,
and possible source of economic progress for a developing country like Philippines. It contains key concepts in
the study of entrepreneurship and core competencies needed by entrepreneurs particularly the youth.

CONCEPT

WHAT IS AN ENTREPRENEUR?
The term “entrepreneur” comes from the French word entreprendre which means “to undertake.” It is a
reference to individuals who have initiated the establishment of a business enterprise. In this classic work The
Theory of Economic Development, Joseph Schumpeter emphasized the role of entrepreneurs in the process of
economic transformation. Through their business ventures, entrepreneurs introduce to the market, innovations
in the form of new products, new processes, new markets, and new organizations. The entrepreneurs
described by Schumpeter, however, are individuals who have generated substantial value and profits from
innovations in a very short period of time. These individuals are also willing to absorb huge risks of using
enormous amounts of capital in their business ventures. We call these people mega entrepreneurs. Because of
the speed by which they create a big amount of value- added’. The entrepreneurs were cited by Schumpeter as
having contributed much to the economic progress of the developed countries in the West. In addition, the
enormous profits they have gained have attracted competitors and imitators, and brought dynamism to the
industries they operate in an ultimately prosperity to the entire economy.
However, another type of entrepreneur can be found in developing countries. Although they also initiate
business enterprises, the ‘value-added’ and profits they make are limited. Some introduce innovations in the
form of changes in their production and distribution processes, but their contributions are minimal and attract
few competitors and imitators. Because they are short in funds and inadequate in skills, they cannot undertake
projects that involve huge capital, sophisticated technology, and extensive risks. We call the
microentrepreneurs. Unlike macroentrepreneurs, they engage in micro and small businesses as an alternative
to formal employment. While there are district differences between megaentrepreneurs and
microentrepreneurs, they have something in common. They both start businesses from opportunities facing
them. In seizing opportunities and converting them into business ventures, there are several steps to follow.

ENTREPRENEURIAL PROCESS
It is important to formulate a strategy, which should include an articulation of a plan and how this is
going to be implemented. This entrepreneurial discipline is often referred to as the entrepreneurial process,
which involves several stages from the awareness of an opportunity to the realization of a business idea. The
steps include the following: (a) discovery, (b) development of concept, (c) organizing resources, (d)
implementation, and (e) reaping the returns.
Discovery refers to the recognition of a business idea or the detection of opportunities that could make
money for the entrepreneur. Megaentrepreneurs draw their ideas from current inventions and other
technological developments that can bring about huge profits for them. On the other hand, microentrepreneurs
typically get their businesses ideas from the limitations of existing products as well as from simple businesses
where markets are easy to enter.
The business idea is then transformed into a business concept. The development of a business
concept gives more details on how the general business idea can be realized. It suggests the preparation of a
business plan, which must spell out the various activities that must be done from production to the distribution
of the product or service. The business plan must also describe how the enterprise is going to be organized
and managed, and how the business is going to be financed, among others.
Organizing resources, on the other hand, describes the process of identifying, sourcing, and financing
human, nonhuman, and other resources needed for the conduct of business. Megaentrepreneurs usually
require highly educated, technologically savvy, and creative employees, who are sourced from the best
universities and training instructions nationally or globally. Since they are engaged in sophisticated business
activities that entail huge capital, they source their funds from the capital market or from venture capitalists. In
contrast, microentrepreneurs draw their resources are relatively inexpensive. Funds for their business
operations are usually sourced from family savings, loans from informal lenders, and remittances of relatives
working abroad.
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Implementation is the process of carrying out the business plan. It covers a number of activities,
including the management of human, physical, technological, and financial resources of the business.
Implementation also includes mechanisms for confronting actual and potential rivals as well as for responding
the various opportunities, challenges, and developments being posed by external environments. Measures on
responding the competitors and the bargaining powers of supplier’s band buyers can be define the competitive
edge of a business enterprise. In addition, major changes in the local economy and the global market present
both opportunities for growth and threats to the survival a business in an industry.
Finally, reaping the returns pertains to strategies related to the expansion of the business firm. It also
covers mechanisms for addressing conditions in the business environment that may affect the future of the firm.
Entrepreneurial ventures, after all, are very dynamic. They usually start as small ventures and eventually
transform over time in terms of the quantity and quality of products they produce as well as the resources they
require in the production process. As these small enterprises change, their governance structures and financing
mechanisms may also change.

CHARACTERISCTICS OF AN ENTREPRENEUR
While the entrepreneurial process is important in the success of the business venture, many
entrepreneurship scholars have argued and presented evidence that entrepreneurial traits are likewise
important in the performance of a business venture. In this section, we present the effects of these personality
characteristics on entrepreneurial performance based on the two criteria. The first pertains to how personal
traits connect with the way entrepreneurs create ‘value- added’ and the second involves the link between these
personal qualities and the formation of entrepreneurial intentions.

Entrepreneurial Traits and Creation of Value- added

The characteristics of an entrepreneur will vary depending on whether they are in the developed
countries pursuing Schumpeterian entrepreneurship or in developing countries operating small enterprises. The
level of education, employment status, wealth, and risk appetite of entrepreneurs differ depending on the
amount of value added or profit created by their enterprises. As discussed previously, there are differences
between megaentrepreneurs and microentrepreneurs.

Level of education. Studies have shown that entrepreneurs need some formal education to be able to
seize the opportunities presented by inventions, innovations, and other technological developments. This may
be true for megaentrepreneurs since they need some degree of technological know- how to understand to
commercial potentials of modern inventions and innovations. On the other hand, since entrepreneurship in
developing countries is more often being used as an alternative to formal employment, many
microentrepreneurs usually have limited educational qualifications. In addition, engaging in small enterprises
does not require high level of schooling. These small enterprises use simple technology, and do not require
technical sophistication from workers. Thus, the degree of human resource qualifications will depend on the
type of business ventures that are being established by entrepreneurs. For microenterprises, which are meant
for employment and economic survival, formal schooling is probably not required. For bigger and more
sophisticated businesses, however, more education and training is required from the entrepreneur.
Employment status. Individuals who become entrepreneurs in developed countries are usually former
employees of companies in the formal sector. The choice of pursuing entrepreneurship can be viewed as a
step in the entrepreneur’s professional development. These entrepreneurs’ usually get their business ideas and
concepts from the operations of companies they have formerly worked for. Knowing the ins and outs of a
company’s operations, including the flaws and weaknesses, they become aware of business opportunities. In
addition, experience in business is important to the success of megaentrepreneurs, who also exposed to
various management practices.
Entrepreneur’s wealth. The wealth of the entrepreneurs is also an important factor. Usually
megaentrepreneurs source their funds from their own wealth and from their families. Some generate capital for
their business from the wealth they have accumulated from their past employment. Since they have existing
wealth at their disposal, they can use some assets as collaterals in securing credit from banks. This is not the
case for microentrepreneurs, who have very limited funds. Many of them are too poor to have substantial
savings to finance a big business venture.
Risk appetite. Risk is also an important factor in undertaking any business venture. Risks are
associated with uncertainties in business operation. These uncertainties can threaten the survival and stability
of a business enterprise. Usually, entrepreneurs are risk- takers. Otherwise they will not engage in business
and will just be comfortable with the certainties of being formally employed.
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Entrepreneurial Traits and Entrepreneurial Intentions

Planned actions formulated in the mind of individuals which are geared towards the objective of
establishing a business venture from potential business opportunities. Based on studies, there are two broad
set of factors that may influence the formation of entrepreneurial intentions: internal and external factors.
Internal factors include mainly the qualities of individuals such as demographics, personal traits, psychological
characteristics, individual skills, prior knowledge, and social ties.
Demographics refer to gender, marital status, age, and employment status of individuals who are likely
to form entrepreneurial intentions.
For personal traits, there are theoretical bases for the contributions of self- confidence, determination,
and enthusiasm and other positive human qualities in influencing entrepreneurial intentions. However, studies
have shown that these personal traits are weak predictors of entrepreneurial intentions.
Psychological traits include a host of qualities, including need for achievement, risk appetite,
acceptance for vagueness, self- efficacy, and goal setting. There are also theoretical bases for these
psychological traits in influencing entrepreneurial intentions, but only appetite for risk and self- efficacy or belief
in one’s strength have been empirically verified.
As discussed earlier, knowledge and skills learned from prior employment are valuable in setting up a
business. Thus, vocational know-how, supervisory and managerial skills acquired from work experience can
also be predict entrepreneurial intentions and behavior.
Besides the effects of the previously mentioned internal factors in the formation of intentions, external
factors are also significant determinants. Among the external factors are environmental support an
environmental influence.
For environmental support, many studies have affirmed the positive effects of government, financial
institutions, and training institutions in setting up businesses. An individual will be inclined to pursue
entrepreneurship if support from various government agencies are forthcoming.
Environmental influence, on the other hand, includes regulatory structure, patents, protection of
property rights, and competitive environment. Government regulations are important particularly in promoting
public interest like addressing information asymmetry, limiting negative externalities and others. However,
overregulation and heavy taxation from the government can discourage potential entrepreneurs.

CHARACTERISTICS OF FILIPINO ENTREPRENEURS

It is interesting to note that there are more females than males that are engaged in the early stage
entrepreneurial activities in the Philippines. However, in the more advanced stages of entrepreneurial activity,
the gender proportion of entrepreneurs and managers become more even. This implies that males tend to be
more resilient in staying in business, as females withdraw at the intermediate stage.
In terms of age, entrepreneurship in the country attracts more young individuals. Given the extent of
youth unemployment in the country, entrepreneurship becomes a viable employment option for the young.
In terms of educational attainment, almost half of entrepreneurs in the early stage development have
finished secondary schools. However, entrepreneurs that own firms at the mature stage of entrepreneurship
have higher level of education.
Majority of those engaged in early stage entrepreneurial activities in the Philippines are in consumer
services including retail, food, personal beauty care, appliance and electronic repair, cleaning services, and
laundry services.

ENTREPRENEURIAL DECISION- MAKING

In this section, we will discuss the various types of thinking that influence entrepreneurial decision-
making. The types of mental processes that we will cover include critical thinking, creative thinking, and
strategic thinking.
Critical thinking refers to the systematic and rational way of providing an answer to a question. It is
systematic since it follows steps in responding to an inquiry. It is rational because it adheres to the rules of logic
in connecting the relationships of variables and in making conclusions.
Creative thinking, on the other hand refers to thought processes that bring about discovery of new
ideas. Unlike critical thinking, it does not follow a systematic or analytical process since it looks at things from
different perspectives. Sometimes, creative ideas start from a dream, an insight, or from mere observation. This
is useful in developing new products and new systems in business operations.
Strategic thinking involves thought the processes that assess current situation that can be useful in the
formation of plans for the future. It is similar to critical thinking since it uses and orderly and logical system in its
assessment. But it also resembles creative thinking in its growth and future orientation.
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SAINT TERESA ACADEMY INC.

Catagbacan Norte, Loon, Bohol
Email: [email protected]
Tel: (038) 505-8006
SHS Member: CATHOLIC EDUCATIONAL ASSOCIATION OF THE PHILIPPINES (CEAP)
BOHOL ASSOCIATION OF CATHOLIC SCHOOLS (TAGBILARAN)

Entrepreneurship 12
Worksheet 1

Name: _____________________ Grade & Section: _________________ Score: _____________

Direction: Read the following question and write your answer on the space provided. (5 points each)

1. Would you rather be an entrepreneur or a manager in a big corporation? Explain your answer.

2. Would you describe yourself primarily as a critical thinker, a creative thinker, or a strategic thinker?
Give specific examples that will support your answer. Which of these thought processes, do you
think, is most effective in formulating entrepreneurial decisions?

3. What are the stages of entrepreneurial process?

MA. GLADYS L. LAPOJA, LPT

Subject Teacher