-owned by one person with a limited

workforce.
ORDINARY SMALL BUSINESS-
pertains to a business enterprise
ENTREPRENEURSHIP (3rd Quarter) managed and operated by an owner who
*DEFINING KEY TERMS IN is not an advocate of and does not
ENTREPRENEURSHIP * practices the concepts and principles of
entrepreneurship.
Entrepreneur- originates from the
French word “entreprende” which
means “to undertake” *THE DIFFERENT SALIENT FEATURES
Undertake- responsibility of OF ENTREPRENEURSHIP*
✔ Organizing >Art of correct practices
✔ Managing -there is a constant change
-As an art, entrepreneurship is closely
✔ Assuming the risk
related to creativity.
*An entrepreneur is defined as a person
>Wealth creating venture
who strongly advocates and correctly
-entrepreneurship is operating within
practices the concepts and principles of
the concept of wealth creation rather than
entrepreneurship in operating and
profit generation.
managing the self-owned business
venture. >Providing valuable goods and
services
*Entrepreneurship is the art of observing
correct practices in managing and -entrepreneurship creates economic
operating a self-owned wealth-creating wealth by providing goods and services to
business enterprise by providing goods the customers.
and services that are valuable to the -these goods and services must have a
customers. value in order to create wealth.
ENTREPRENEUR BUSINESS PERSON *ESSENTIAL PRINCIPLE: “not to sell
waste to consumers but only valuable
⮚ Practices the ⮚ Does not
good and services”
concepts practice
>Opening and managing self-owned
and
business
principles
*two important elements:
⮚ +Risk ⮚ -Risk
-the concept of opening a self-owned
⮚ Small ⮚ Ordinary enterprise
Business small -the concept of managing it
business *a business, whether big or small, that is
⮚ S&M ⮚ Profit managed by a person other than its
Enterprises generation- owner is not within the concept Intrapreneurship
20 livelihood of entrepreneurship. -manger
employees *Planning! -big companies
⮚ Long term ⮚ Short term >Risk taking venture
goal goal -once an entrepreneurial venture is
⮚ Wealth born because of new ideas or
creating opportunities, risk comes simultaneously
SMALL BUSINESS- refers to a business with the venture.
or enterprise that correctly adopts and -the rule: Risk is always attached to the
practices the principles of business
entrepreneurship. -an entrepreneur should face business
risks intelligently.

*THEORIES, ACTIVITIES AND
MISCONCEPTIONS*
Theory:
- A plausible or scientifically acceptable
general principle or body of principles
offered to explain phenomena.
- Not an absolute truth. It can be
supported by another observation or
proven to be otherwise.
THEORIES UNDER
ENTREPRENEURSHIP
▪ Economic Principle- economic
phenomenon
▪ Psychological Principle- mind &
behavior, consumers, entrepreneurs
▪ Sociological Principle- cultures,
customs & traditions
>Innovation Theory- Joseph
Schumpeter
-argued that the chances for economic
development to take place would be slim
unless revolutionary changes in the
circular flow of economy would happen.
Structural Change Innovation = Economic
Development
An “Innovation” may consist of:
*the introduction of a new product.
*the introduction of a new method of
production.
*the opening of a new market
*the conquest of a new source of raw
material
*the carrying out of a new organization of
any industry like the creation of a
monopoly.
>Keynesian Theory
*developed by John Maynard Keynes
*This theory puts emphasis on the role of
the government in the entrepreneurial
and economic development, most
especially when the economy was
experiencing depression.
Recession- widespread economic decline
(6 months)
Depression- severe problems in the
economy (6+ months)
Role/Intervention of government = Short
term problems
>Alfred Marshal Theory
*As he strongly asserted that there are
four factors in the production of goods
and services in the economy.
✔ Land
✔ Labor
✔ Capital
✔ Organization
>Risk and Uncertainty-Bearing
Theory
*developed by Frank Hyneman Knight
*Profit is a reward for risk bearing.
*ꜛRisk = ꜜProfit
*An entrepreneur must anticipate
possible random event to happen while
shouldering risk at the same time.
>Weber’s Sociological Theory
*Sociological aspect
*Social cultures are primary driving
elements of entrepreneurship.
*The entrepreneur is executing his/her
entrepreneurial ventures in line with good
customs and traditions, religious beliefs,
and morals.
Ex: Nov 1- Araw ng patay- Selling of
flowers
>Kaldor’s Technological Theory
*developed by Nicholas Kaldor
*he proposed that modern technology is
an essential factor in production.
> Leibenstein’s GAP-Filling Theory
*proposed by Henry Leibenstein
*The primary role of the entrepreneurship
in any economic activity is to fill the
existing gap.
Existing Gap- insufficient, economic
problems
Filling Gap- possible solutions
*Three traits of entrepreneurship
includes:
● Recognizing market trends
● Possessing ability to connect
different markets
● Determining profitable activities
 *MISCONCEPTIONS ON
ENTREPRENEURSHIP*
>Entrepreneurship only applies to
manufacturing business
*It’s a common misconception that
Entrepreneurship is only applicable to
manufacturing but not to merchandising
and service.
>Entrepreneurship applies mostly to
person with good educational
background in business courses
*Successful entrepreneurs come from
different social statuses, educational
backgrounds, different environment.
>Entrepreneurship applies only to a
good economy
*The bad economy does not completely
serve as a constraint to the continuation
of entrepreneurial ventures and even the
creation of new ones.
>Entrepreneurship is simply opening
a business
*Prior to the latter, the business must
have already passed through the
preliminary stages of scanning the
environment and preparation of the
feasibility study and business plan.
*IMPORTANCE OF
ENTREPRENEURSHIP* Entrepreneurial
venture
Filipino people
-products
-job
Local economy
Philippine economy
*SOURCES ON ENTREPRENEURIAL
IDEAS*
1. Changes in the environment
-entrepreneurial ideas arise from the
changes that happen in the external
environment.
>Physical -》 Climate
-》Natural resources
(alternative resources)
-》 Economic forces
>Societal -》 Socio-cultural (trend)
-》 Political
2. Technological Discovery and
Achievement
-discovery and advancement in the use of
technology are another good source of
entrepreneurial ideas and opportunities.
*Good, Service, Process- Innovation
3. Government’s Thrust, Programs, &
Policies
-priorities, projects programs and policies
of the government are also good sources
of entrepreneurial ideas.
4. PEOPLE’S INTEREST
- interest, hobbies and preferences
of people are a rich source of
entrepreneurial ideas.
5.) PAST EXPERIENCES
-expertise and skills developed by a
person who has worked in a particular
field may lead to the opening of a related
business enterprise.
*CHARACTER TRAITS COMMON TO
SUCCESSFUL ENTERPRENEURS AND
SKILLS AND CORE COMPETENCIES IN
ENTERPRENEURSHIP*
● CHARACTER TRAIT
-refer to the mark of attribute that
distinguishes an entrepreneur from the
owner of an ordinary business.
Based on studies conducted by Small
Enterprise Research and Development
Foundation (SERDF) of the Department of
Trade and Industry (DTI), there are 10
entrepreneurial characteristics grouped
into 3 major cluster:
● ACHIEVEMENT CLUSTER
- Consist of entrepreneurial character
traits that are directly related to the
entrepreneurs desire to be an achiever in
the field entrepreneurship
- Achievers by nature
*OPPORTUNITY SEEKER
-seeks and acts on new business
opportunity
*COMMITED
- accepts full responsibility for
what has been promised to the customers
 - establishes proper workers, so
that goods and services are derived as
promised.
*PERSISTENT
- “goods” and “surrender” are
not included in vocabulary of successful
entrepreneurs.
- repeated actions in order to
over came obstacles.
*RISK TAKER
- aggressive (not scared to take
any risk in business), moderate (more
calculate in taking risks; analyzes
situation before taking a leap),
conservative (not every eager to take any
kind of risk)
*EFFICIENT AND QUALITY OREINTED)
- always perform the required
task in accordance with existing standard
of excellence or continuously improves
past performance.
- strives to do things better
● PLANNING CLUSTER
- the concept of planning is
inherent in the entrepreneur, being both
the owner and the manager of the
business.
*GOAL-SETTER
- basic concept of planning is
setting goals and objective
- Specific, Measurable,
Achievable, Realistic, Time Bound
*INFORMATION-SEEKER
- seeks a strong basis to make
sound decision
- seeks opinions and advice from
experts in the business field
- finds possible ways to make
sure that the desired info is complete
*SYSTEMATIC IN PLANNING AND
MONITORING
- implies rational and logical
approach in performing the said activities
- develops a logical step-by-step
approach in the formulation of plans
- monitoring the evaluation of the
activities adopted courses of actions
whether they are carried in accordance
with the plans
- gathers qualitative and
quantitative info before formulating the
plans
● POWER CLUSTER
- traits that reflect the degree of
the interpersonal relations maintenance
by successful entrepreneurs
- relationships of the
entrepreneur with other people
*PERSUASIVE AND POSITIVE
NETWORKER
- adopts specific strategies that
will influence and convince while
maintaining the highest degree of
respect, and makes use of positive
contracts in order to meet the goals and
objectives of business endeavor.
*SELF-CONFIDENT
- able to project a favorable
image to themselves which is founded on
respect and good deeds in business
community
- a gradual process
SKILL – considered as the personal
abilities to do things well; come from the
totality of knowledge, practice or
experience and aptitude of person
SOURCES OF SKILL – knowledge,
aptitude, and practice/experience
3 TYPES OF SKILL THAT
ENTERPRENEUR MUST HAVE;
1. COGNITIVE SKILLS
-ability to understand written materials
-ability to learn and apply new
information
-ability to solve problem systematically
-ability to create new ideas
-ability to innovate new products and
procedures or methods
2. TECHNICAL SKILLS
-information technology
-feasibility study and business plan
preparation
-technical writing skills
-marketing
-management and finance
3. INTERPERSONAL SKILLS
-skills in verbal communication
-skills in non-verbal communication
-skills in listening
-skills in leading
-skills in negotiating

ENTREPRENEURIAL COMPETENCY
-Entrepreneurial Concepts and
Principles - Entrepreneurial Skills
- Entrepreneurial Character Traits

Competitive advantage refers to the

strategic position and condition of the
entrepreneurship venture that:
- provides the necessary attributes
to outperform competition
- distinguishes the venture from
competitors
- achievers superior performance in
the industry, and
- produces a product or develops
production methods that can hardly be
copied by competitors

* Fully understands entrepreneurial

concepts and principles
* Equipped with character traits among
successful entrepreneurs
* Acquired develops, and sharpens
entrepreneurial skills (cognitive,
technical, and interpersonal skills)