GEE 8 – THE

ENTREPRENEURIAL MIND

This is a property of
PRESIDENT RAMON MAGSAYSAY STATE UNIVERSITY
COLLEGE OF TOURISM AND HOSPITALITY MANAGEMENT
NOT FOR SALE

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GEE 8- THE ENTREPRENEURIAL MIND
COPYRIGHT 2021

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work of the Government of the Philippines. However, prior approval of the government agency
or office wherein the work is created shall be necessary for exploitation of such work for profit.
Such agency or office may, among other things, impose as a condition the payment of
royalties.

Borrowed materials included in this module are owned by their respective copyright holders.
Every effort has been exerted to reach and seek permission to use these materials from their
respective copyright owners. The University and authors do not claim ownership over them.

Learning Module Development Team

Assigned Chapter Title Author/s

Entrepreneurship and the
Chapter 1
Entrepreneur
Entrepreneurs Impact to
Chapter 2
Economy
The student as entrepreneur:
Chapter 3
A Self-Evaluation
Success Indicators for a
Chapter 4
Business
Chapter 5 Setting Personal goals
Opportunity or Idea: Using
Business plan to determine Karen E. Casuga
Chapter 6
when Business Opportunity Pearl Joy F. Danila
Exists
Start-up operations, getting
Chapter 7
started in Business
Production of Goods and
Chapter 8
Services
Chapter 9 Financial Management
Social Responsibilities of
Chapter 10
Entrepreneurs
Business Success Through
Chapter 11
People Development

Evaluators:

Overall Chairperson: Dr. Esmen M. Cabal

Vice Chairperson: Dr. Lorna L. Acuavera
Member: Dr. Juan A. Asuncion
Dr. Dann Mark N. Dela Cruz
Ms. Jammie Fritz Castillo

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The Entrepreneurial Mind  GEE 8 3|Page
Course Overview
Introduction
This course provides business and non-business majors with the skills necessary to
succeed as an entrepreneur. The fundamentals of starting and operating a business,
developing business plan, obtain financing, marketing a product or service and developing an
effective accounting system will be covered.

Course General Objectives

By the end of the course, the students will be able to:
1. Know about the definition, concepts and scope of the Entrepreneurship; its perspective,
knowledge competency, and risk tolerant behavior.
2. Understanding the basic concepts in the area of entrepreneurship
3. Understanding the role and importance of entrepreneurship for economic development
4. Understanding the stages of the entrepreneurial process and the resources needed for
the successful development of entrepreneurial ventures.
5. Understand how entrepreneurs characterized by relevant traits thrive in a complex
global society
6. Understand the importance of growth mind set in establishing positive attitudes towards
entrepreneurships
7. Understand the importance of growth mind set in establishing positive attitudes towards
entrepreneurships
8. Acquire self- management and critical thinking in order to work positively in a team by
creating a business plan with product.
9. Adopting of the key steps in the elaboration of business idea
10. Develop personal creativity and entrepreneurial initiative

Course Details:
Course Code : GEE 8
Course Title : The Entrepreneurial Mind
No. of Units :3
Classification : Lecture-based
Pre-requisite / Co-Requisite : None
Semester and Academic Year : 1st Semester, AY 2021-2022
Schedule : Monday & Wednesday
: 7:30 AM- 9:00 AM [BSHM 4B]
: 12:30 PM – 2:00 PM [BSTM 4A]
: Tuesday & Thursday
: 2:00 PM – 3:30 PM [BSHM 4C]
Name of Faculty : Pearl Joy F. Danila
Contact Details : Email: [email protected]
: Mobile Number
: FB Account: Pearl Danila
Consultation : Friday
: 8:00 AM – 10:00 AM

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Learning Management System

The University LMS will be used for asynchronous learning and assessment. The link and class
code for LMS will be provided at the start of class through the class official Facebook Group /
Messenger Group.

• Edmodo
• Google Classroom
• University LMS

Assessment with Rubrics

Students will be assessed in a regular basis thru quizzes, long/unit/chapter tests,

individual/group outputs using synchronous and/or asynchronous modalities or submission of
SLM exercises. Rubrics are also provided for evaluation of individual/group outputs.

Major examinations will be given as scheduled. The scope and coverage of the examination
will be based on the lessons/topics as plotted in the course syllabus.

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 0323

Module Overview
Introduction

This THE ENTREPRENEURIAL MIND was written for the students of hospitality
and tourism programs. Students will be able to read and fully understand its contents and
answer the exercises placed at the end of every chapter. It will also be helpful and served as a
guide to the faculty teaching the students of the tourism and hospitality management. The
objective of the authors is to explain the basic information and concepts about the hospitality
and tourism world. Also, it equips the students to have knowledge on operation management
of tourism and hospitality industry in understanding how it can be made to work for them and
in their future profession.

Table of Contents

Chapter1: Entrepreneurship and the Entrepreneur

1.1 What is Entrepreneur?
1.2 Functions of Entrepreneur
1.3 Character of an Entrepreneur
1.4 Characteristics of Entrepreneurship
1.5 Types of Entrepreneur
1.6 Process of Entrepreneurship
1.7 Functions of Entrepreneurship
1.8 Barriers to Entrepreneurship
Chapter2: Entrepreneurs Impact to Economy
2.1 Entrepreneurs Help Economies
2.2 Entrepreneurial Ecosystems
2.3 Becoming an Entrepreneur
2.4 The Individual Entrepreneur
2.5 Entrepreneurial background and characteristics
2.6 Motivation
2.7 Role Models and Support Systems
2.8 Male versus Female Entrepreneurs
2.9 Minority Entrepreneurship
2.10 Entrepreneurs versus Inventors
Chapter3: The student as entrepreneur: A Self-Evaluation
3.1 Why you should do a formal Self-Assessment?
3.2 Anatomy of Self-Assessment
3.3 A few questions to ask yourself
3.4 Questions that delve into external factors
Chapter4: Success Indicators for a Business
4.1 7 stages of starting and Running a business
4.2 Opportunity and Idea Generation
4.3 Approaches to Generating Ideas
4.4 Techniques of Brainstorming
4.5 Analytic Brainstorming
4.6 Quiet Brainstorming
4.7 Role Play Brainstorming
4.8 Brainstorming with support
4.9 Radically Creative Brainstorming

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 Chapter5: Setting Personal goals
5.1 Personal Goal Setting
5.2 How to set a goal
5.3 Why set goals?
5.4 Starting to set personal goals
5.5 Staying on course
5.6 Smart goals
5.7 Further tips for setting your goals
5.8 Achieving goals
5.9 Example personal goals
Chapter6: Opportunity or Idea: Using Business plan to determine when a Business
opportunity exists
6.1 What is a business plan?
6.2 Purpose of a business plan
6.3 Steps of making a business plan
6.4 The importance of business plan
6.5 Template of business plan
Chapter7: Start-up operations, getting started in business
7.1 Steps on how to start a Business
7.2 Organizational resources that can be transformed into a Concrete
and Operating Micro-business
7.3 Small Business Defined
7.4 Organizing and Managing a Small Business
Chapter8: Production of goods and services
8.1 Nature of production
8.2 Factor of production
8.3 Cost of production
8.4 Produce or purchase
8.5 How to purchase
8.6 Inventory control
8.7 Quality control
8.8 Productivity
Chapter9: Financial Management
9.1 Financial Management defined
9.2 Financing the enterprise
9.3 Cooperative for Micro Business
9.10 Other Sources of Funds
9.11 The need for financial management
9.12 Developing Financial Plan
9.13 Balance Sheet
Chapter10: Social Responsibilities of Entrepreneurs
10.1 Social responsibility explained
10.2 Historical development of social responsibility
10.3 Theory of Karl Marx
10.4 The influence of labor Unions
10.5 Theories of Social Responsibility
10.6 Social responsibility to consumers
10.7 business ethics
Chapter11: Business Success through People Development

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 11.1 Motivating people
11.2 positive reinforcement
11.3 employee expectations from management
11.4 How to get peak performance
11.5 Features of excellent enterprise
11.6 Success of technique of famous people
11.7 Good character create success
11.8 The power of prayer

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 The Entrepreneurial Mind

Chapter 2

Entrepreneurs Impact to
Economy

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 The Entrepreneurial Mind

Chapter 2

Entrepreneurs Impact to
Economy

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Chapter 2
Entrepreneurs Impact to Economy

Introduction

Every country tries to achieve maximum economic development. The economic

development of a country to a large extent depends on human resources. But human resources
alone will not produce economic development - there must be dynamic entrepreneurs. A
country may be rich in natural resources but if it lacks entrepreneurship, it may not be able to
utilize the resources and it may lag behind in economic development. This is true of many
developing countries have realized the importance of entrepreneurs and earnest attempts are
now being made to motivate industrial entrepreneurs.
Entrepreneurs are action-oriented, highly motivated individual who take risks to
achieve goals. An entrepreneur is one who looks for opportunities, identifies opportunities and
seizes opportunities mainly for economic gain (profit). Economic development of a country
depends primarily on its entrepreneurs. Entrepreneurs seizing opportunities set-up business
undertakings and industries, thereby bring economic transformation. They are therefore apply
called agents of change. By their actions, people have a better standard of living, get improved
products and comforts and the wide disparity in income levels is gradually reduced. Besides,
an economically advanced country will have more power and a confident self-image.

Specific Objectives

At the end of the lesson, the students should be able to:

1. Identify how entrepreneurs help the economy.
2. Determine on how to become an entrepreneur.
3. Identify the characteristics of successful entrepreneurs.
4. Evaluate the characteristics of successful entrepreneurs to determine which are the
most essential for success in business.

Duration
Chapter 2: Entrepreneurs Impact to Economy [6 Hours]

2.1 ENTREPRENEURS HELP ECONOMY

Nurturing entrepreneurship can have a

positive impact on an economy and a society in
several ways. For starters, entrepreneurs create new
business. They invent goods and services, resulting
in employment, and often create a ripple effect,
resulting in more and more development.

“Entrepreneurs add to the gross national income.”

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 Entrepreneurs create social change. They break https://dcid.sanford.duke.edu/importance-of-entrepreneurship/
traditions with unique inventions that reduce dependence on existing methods and systems,
sometimes rendering them obsolete. Smartphones and their apps, for example, have
revolutionized work and play across the globe.
Entrepreneurs invest in community projects and help charities and other non-profit
organizations, supporting causes beyond their own.

2.2 ENTREPRENEURIAL ECOSYSTEM

There is research that shows high levels of self-employment can stall economic
development. Entrepreneurship, if not properly regulated, can lead to unfair market practices
and corruption, and too many entrepreneurs can create income inequalities in society. Overall,
though, entrepreneurship is a critical driver of innovation and economic growth. Therefore,
fostering, entrepreneurship is an important part of economic growth strategies of many local
and national governments around the world.
To this end, governments commonly assist in the development of entrepreneurial
ecosystems, which may include entrepreneurs themselves, government-sponsored assistance
programs and venture capitalists. They may also include non-government organizations, such
as entrepreneurs’ associations, business incubators, and education programs.

2.3 BECOMING AN ENTREPRENEUR

There are five general steps that most, if not all, successful entrepreneurs have followed:
1. Ensure Financial Stability
This first step is not a strict requirement but its definitely recommended. While
entrepreneurs have built successful businesses while being less than financially flush
(think of Facebook founder Mark Zuckerberg as a college student), starting out with an
adequate cash supply and ensuring on going funding can only help an aspiring
entrepreneur, increasing his or her personal runway and give him more time to work or
building a successful business, rather than worrying about making quick money.

2. Build a Diverse Skill Set

Once a person has a strong finance, it is important to build a diverse set of skills and
then apply those skills in the real world. The beauty of step two is it can be done
concurrently with step one. Building a skill set can be achieved through learning and
trying new tasks in real world setting. For example, if an aspiring entrepreneur has a
background in finance, he can move into a sales role at his existing company to learn
the soft skills necessary to be successful.

3. Consume Content Across Multiple Channels

As important as building a diverse skill set is, the need to consume a diverse array of
content is equally so. This content can be in the form of podcast, books, articles or
lectures. The important thing is that the content, no matter the channel, should be varied
in what it covers. An entrepreneurs should always familiarize himself with the world
around him so he can look at industries with a fresh perspective, giving him the ability
to build a business around a specific sector.

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 4. Identify a Problem to Solve
Through the consumption of content across the multiple channels, an aspiring
entrepreneur is able to identify various problems to solve. One business adage dictates
that a company’s product or service needs to solve a specific pain point either for
another business or for a consumer group. Through the identification of a problem, an
aspiring entrepreneur is able to build a business around solving that problem.

5. Solve that Problem

Successful start ups solve a specific pain point for other companies or for the public.
This is known as “adding value within the problem.” Only through adding value to a
specific problem or pain point does an entrepreneur become successful.

2.4 THE INDIVIDUAL ENTREPRENEUR

Entrepreneurial Feelings
A. There is no “true entrepreneurial profile”. Entrepreneurs come from many educational
backgrounds, family situations and work experiences.
B. Locus of Control.
1. Entrepreneurs must be able to sustain the drive and energy required to form
something new and to manage the new enterprise.
2. While research results are inconsistent, internal control seems to be a characteristic
of entrepreneurs.
3. Internal beliefs appear to differentiate entrepreneurs from the general public, but
not from managers since both tend toward internality.
C. Feelings about Independence and need for Achievement.
1. The entrepreneur also has a need for independence, to do things in his or her own
way and time.
2. Another controversial characteristic of the entrepreneurs needs for achievement.
D. Risk Taking.
1. Risk taking seems a part of entrepreneurial process.
2. Although many studies have focus on risk taking in entrepreneurship, no conclusive
relationship has been established.

2.5 ENTREPRENEURIAL BACKGROUND AND CHARACTERISTICS

Only a few background characteristics have differentiated the entrepreneur from

managers.

A. Childhood Family Environment.

1. The impact of birth order and social status has had conflicting research results.
2. Some studies have found that entrepreneurs tend to be firstborn; others find no
relationship.
3. There is strong evidence that entrepreneurs, both male and female, tend to have
self-employed or entrepreneurial parents.

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 A. Having a father or mother who is self-employed provide a strong inspiration in
the example of independence and flexibility of self-employment.
B. This feeling of independence is often further enforced by entrepreneurial
mother.
4. The overall parental relationship may be the most important aspect of the childhood
environment in establishing the desirability of entrepreneurial activity.
5. Parents of entrepreneurs need to be supportive and encourage independence,
achievement and responsibility.
A. This supportive relationship appears to be most important for females.
B. Female entrepreneurs tend to grow up in middle to upper class environments,
where family are child centered, and are similar to their fathers in personality.

B. Education.
1. Education appears important in the upbringing of entrepreneur, in the level of
education obtained, and in playing a major role in coping with problems.
2. Although formal education is not necessary for starting a new business, it does
provide a good background.
3. The ability to communicate clearly in written and spoken work is also important.

C. Personal Values.
1. Studies have failed to indicate that entrepreneurs can be differentiated on personal
valued from managers, unsuccessful entrepreneurs, or the general public.
2. Studies have shown that the entrepreneur has a different set of attitudes about the
nature of management.
3. Five consensus characteristics have been found:
a. Superior product quality
b. Quality service to customers
c. Flexibility, or the ability to adapt to changes in the market
d. High caliber management
e. Honesty and ethics in business practices
4. Ethics and ethical behavior are also very important to entrepreneurs.

D. Age.
1. Entrepreneurial age, as contrasted to chronological age, is the age of the
entrepreneur reflected in the experience.
2. Entrepreneurial experience is one of the best predictors of success.
3. In chronological age, most entrepreneurs start their careers between ages 22 and 55.
4. There are milestones years every five years.
5. Generally, male entrepreneurs start their first venture in their early 30s, while
women tend to do so in their middle 30s.

E. Work History.
1. Dissatisfaction with ones job often motivates the launching of a new venture.
2. Previous technical and industry experience is also important once the decision to
start a business made.
3. Experience in the following areas is particularly important: financing, product or
service development, manufacturing, development of distribution channels, and
preparation of marketing plan.

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 4. As the venture become establish, managerial experience and skills become more
important.
5. Entrepreneurial experience is also important.

2.6 MOTIVATION

While motivations may vary, the

reason coted most often for becoming an
entrepreneur is independence not wanting to
work for anyone else.

A. Other motivating factors differ

between male and female
entrepreneurs.
1. Money is the second reason for
men’s starting a venture.
2. Job satisfaction, achievement,
opportunity, and money are the
rank order reasons for women.
https://www.invistaperforms.org/7-key-steps-to-motivate-and-inspire-your-team/

2.7 ROLE MODELS AND SUPPORT SYSTEMS

One of the most important factors influencing entrepreneurs in their career choice is the choice
of role models.
1. Role models can be parents, relatives or successful entrepreneurs in the community.
2. Role models can also serve in a supportive capacity as mentors during and after the new
venture is launched.
a. This support system is most crucial during the start-up phase.
b. It is important that entrepreneur establish connections and eventually networks
early in the venture formation process.

A. Moral Support Network.

1. It is important for the entrepreneur to establish a moral support network of
family and friends.
2. Most entrepreneurs indicate that their spouses are their biggest supporters.
3. Friends can provide advice that is more honest than that received from others;
also, encouragement, understanding, and assistance.
4. Relatives can also be sources of moral support, particularly if they are also
entrepreneurs.

B. Professional Support Network.

1. The entrepreneurs also need advice and counsel which can be obtained from
members of a professional support network.
2. Most entrepreneurs indicate that they have mentors.
a. The mentor is coach, sounding board, and advocate.

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 b. The individual selected needs to be experts in the field.
c. An entrepreneur can initiate the “mentor finding process” by identifying and
contacting a number of experts.
3. Another source of advice is a network of business associates.
a. Self employed individuals who have experience in starting a business are good
sources.
b. Clients and buyers are also important as they provide word-of-month
advertising.
4. Suppliers are good components of the professional support network – they help
establish credibility with suppliers and provide good information on trends in the
industry.
5. Trade associations are good network additions, as they keep up with new
developments and can provide overall industry data.
6. Affiliations with individuals developed in hobbies, sporting events, civic
involvements, and school alumni groups are excellent sources of referrals, advice,
and information.
C. Each Entrepreneur needs to establish both a moral and professional support network to
share problems with and gain overall support.

2.8 MALE VERSUS FEMALE ENTREPRENEURS

A. Women are now starting new ventures at a higher rate than men.
1. Women are starting businesses in the U.S at twice the rate of all businesses.
2. Women now own about 6.2 million small businesses, employing 9.2 million people.
B. In some aspects female entrepreneurs possess very different motivations, business
skills, and occupational backgrounds.
1. Factors in the start up process for male and female entrepreneurs are different
especially in such areas as support systems, sources of funds, and problems.
2. Men are motivated by the drive to control their own destinies.
3. Women tend to be more motivated by the need for achievement arising from job
frustration.
C. Departure points and reasons for starting the business are similar for both men
and women.
1. Both have generally had a strong interest and experience in the area of their venture.
2. For men, the transition for a new venture is easier when the venture is an outgrowth
of a present job.
3. Women often leave a previous occupation with a high level of frustration and
enthusiasm for the new venture rather than experience.
D. Start-Up Financing.
1. Males often have investors, bank loans or personal loans in addition to personal
funds as sources of start-up capital.
2. Women usually rely solely on personal assets or savings.
3. Obtaining financing and lines of credit are major problems for women.
E. Occupations.
1. Both groups tend to have experience in the field of their ventures.
2. Men more often have experience in manufacturing, finance, or technical areas.
3. Most women usually have administrative experience, often in service-related fields.
F. Personality.

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 1. Both men and women tend to be energetic, goal oriented and independent.
2. Men are often more confident and less flexible and tolerant than women.
G. The background of male and female entrepreneurs tends to be similar.
1. Women are a little older when they embark on their careers.
2. Men often have studied in technical- or business-related areas, while women tend
to have liberal arts education.

H. Support Groups.
1. Men usually list outside advisors as most important supporters, with spouses being
second.
2. Women list their spouse’s first, close friends second, and business associates third.
3. Women usually rely more heavily on a variety of sources for support and
information than men.
I. Nature of Venture.
1. Women are more likely to start a business in a service-related area.
2. Men are more likely to enter manufacturing, construction, or high technology fields.

2.9 MINORITY ENTREPRENEURSHIP

A. The differences in behavior of various groups must be understood in the context of the
environment and economic opportunities available, making research difficult.
B. Most literature dealing with minority entrepreneurship has focused on the
characteristics of the group under study.
1. In terms of ownership, one study found:
a. The lowest participation rate is for African-Americans.
b. The second highest but fastest growing rate is for Hispanics.
c. The highest rate is for Asians.
2. Studies have also found differences in education, family background, and age when
starting the venture.
C. Studies have found differences between ethnic groups in benefiting from community
resources.
D. Entrepreneurship has increase among Asians, African-Americans, Hispanics, and
Native Americans.
1. Hispanics owned businesses make up 5.8% of businesses.
2. Asian American owners make up 4.4%.
3. African American own 4.0% and American Indians 1%.
4. This 15% minority share is up from 6.8% in 1982.

2.10 ENTREPRENEURS VERSUS INVENTORS

A. An inventor, an individual who creates something for the first time, is a highly driven
individual motivated by his or her own work and personal ideas.
1. An Inventor:
a. Tends to be well educated.
b. Has family, educational, and occupational experiences that contribute to free
thinking.
c. Is a problem solver.
d. Has a high level of confidence.
e. Is willing to take risk

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 f. Has the ability to tolerate ambiguity and uncertainty.
2. A typical inventor places a high premium on being an achiever, and is not likely to
view monetary benefits as measure of success.
B. An inventor differs from entrepreneur.
1. An entrepreneur falls in love with a new venture, while the inventor falls in love
with the inventions.
2. The development of a new venture based on an inventors work often requires the
expertise of an entrepreneur to commercialize it.

REFERENCES/ADDITIONAL RESOURCES/READINGS

Printed References:
Instructional Manual in the Entrepreneurial Mind, August 2020, President Ramon
Magsaysay State University, College of Industrial Technology
Fajardo Feliciano T., Entrepreneurship, Capitol House Incorporated, 1994
Online References:
Why Is Entrepreneurship Important to the Economy? (investopedia.com)

How Entrepreneurship Impacts The Global Economy (best4businesses.com)

What is the Difference Between an Inventor, Entrepreneur and Innovator?

(universitylabpartners.org)

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