The Entrepreneurial

Mind
JASMIN S. ACOSTA
Instructor
 Chapter 1
The Concept of Entrepreneurship

(Source: https://pixabay.com/illustrations/teamwork-hr-management-team-people-4173707/)
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.
 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/)
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.
1

2. The manager is interested in solving organizational problems rather

than finding other avenues in the solution of the problems.
5

3. The manager calibrates in the refinement of policies and procedure

and tends to revise them to solve existing problems.
5

4. He find ways and means to provide solutions and compliance to

routine activities.
5

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.
5

2. He discovers the roots of the problem and develops avenues to better solve

the problem. He formulates solutions and alternatives.

5

3. He develops basic assumptions and hypothesis related to current practices

and makes innovations based on careful analysis through SWOT.
5

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

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.
5

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

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.