MODULE 1:

OVERVIEW OF
ENTREPRENEURSHIP
What is ENTREPRENEURSHIP?
It
is a proactive process of developing a business venture to
make a profit.
Itinvolves seeking opportunities for a market,
establishing and operating a business out of the
opportunity, and assessing its risks and rewards through
close monitoring of the operations.
 Societal and Economic Benefits of
Entrepreneurship
1. Entrepreneurship produces more jobs that equate to an increase in national
income.
2. Entrepreneurship amplifies economic activities of different sectors of society.
3. Entrepreneurship introduces new and innovative products and services.
4. Entrepreneurship improves people’s living standards.
5. Entrepreneurship disperses the economic power and creates equality.
6. Entrepreneurship controls the local wealth and balances regional
development.
7. Entrepreneurship reduces social conflicts and political unrest.
8. Entrepreneurship elicits economic independence and capital formation.
Who is an ENTREPENEUR?
 Itcame from the French words entre, which means “between”, and
prendre, which means “to take”.
 An entrepreneur is a unique individual who has the innate ability
and extraordinary dedication to establish and manage a business,
acknowledging all the risks and reaping its rewards.

LEADERSHIP is the core of every entrepreneur.

Five Levels of Entrepreneurial Development
according to Action Coach
Level of Entrepreneurial Characteristics
Development
1. THE SELF-EMPLOYED  Not comfortable with the routines of a desk job.
 Do not want to conform to a fixed working schedule.
 Want to do things in their own
 Too reliant on themselves which leads to exhaustion.
 Eventually realize that a successful business should work for
them.
2. THE MANAGER  They feel the need to step up and ask some help from other
people.
 Delegate and hire potential employees.
 Problems on the employees’ qualifications may arise that will
lead them to assess their employees and begin to create
positions that match the requirements of the business and
employee’s expertise.
Level of Entrepreneurial Characteristics
Development
3. THE LEADER  They already enjoy seeing people flourish, stepping up and
producing great results with minimal supervision.
 They already recognized key leaders in their organization
 Focus on the big picture and strategic direction of the business
rather than generating sales and operating the business.
4. THE INVESTOR  They look for more opportunities for their business to grow.
 May either purchase one or two businesses.
 Will delegate a suitable manager for the business operations
and will act as directors.
5. THE TRUE  They aim for quality and excellence in their work.
ENTREPENEUR  They have fully learned, and continue to practice, a four-step
process of thinking – idealization, visualization, verbalization,
and materialization.
 In this stage, true entrepreneurs now have an income that
keeps on multiplying even if they do not put much effort.
Four-Step Process of Thinking of a True
Entrepreneur
1. IDEALIZATION – entrepreneurs dream enormously and desire to
build an ideal environment.
2. VISUALIZATION – entrepreneurs start to create plans to make the
dream a reality.
3. VERBALIZATION – involves sharing their ideas with other people,
knowing that their vision is already occurring.
4. MATERIALIZATION – happens when the vision becomes a reality.
 Other terms coined to suit an
entrepreneur’s field or expertise…
1. Technopreneur – is an entrepreneur who puts technology at the core of his or
her business model.
2. Social Entrepreneur – is one who takes advantage of the country’s social
problems and turn them to profitable institutions with the intention of helping
the disadvantaged community rather than making a profit.
3. Intrapreneur – is an entrepreneur in a large company or corporation who is
tasked to think, establish, and run a new big idea or project. They are usually
product managers or the business development managers of a company.
4. Extrapreneur – is an entrepreneur who hops from one company to another to
act as the innovation champion, providing creative and efficient solutions.
Common and Core
Competencies in
Entrepreneurship
Common Traits of Entrepreneurs
1. Proactive
• Entrepreneurs are reactive rather than passive.
• They ensure that proper research is done, the risk factors are assessed, and
plans are executed on a timely and most efficient way.
2. Agents of Change
• They are innovation champions.
• They see opportunities in hopeless and complex situations.
• They don’t settle for mediocrity and the status quo.
3. Risk Takers
• Entrepreneurs do not just grab opportunities left and right; they have to take
into consideration the potential threats that they may encounter.
• If they think that there is a big chance of succeeding, they push through with
the venture and don’t let the opportunity pass.
Common Traits of Entrepreneurs
4. Have a Sharp Eye for Opportunities
• They know how to assess the net cause and effect of an
opportunity and decide intelligently if a venture should be
considered or not.
5. Sociable
• Soft skills are one of the most important competencies of
entrepreneurs as these establish the relationship with the most
important assets of the company – its people and its customers.
• Relationship management is the key for employee and customer
relation, which can be achieved by a social entrepreneur.
6. Networkers
• A networker knows the key people to connect with.
 Common Traits of Entrepreneurs
7. Decisive
• They do not settle for gray areas or unclear solutions.
• They do not leave an issue unsolved without disposition.
• They make sure that all aspects of their business have clear objectives and strategies.
• They base their decisions on scientific calculations backed up by their experience
and technical knowledge.
8. Balanced
• The minds of entrepreneurs should have a balance between the analytical and the
creative side.
• Their brains are always playing with “unique ideas” that no one has ever thought of
yet.
9. Innovative
• They do not stop improving and thinking of new and worthwhile ideas for their
business.
Core Traits of Entrepreneurs
1. LEADERS
 To be successful leaders, they must be a source of inspiration for
their employees.
 They must be very humble, approachable, friendly, and also know
how to listen to people’s concerns.
 Leaders, act on their responsibilities that were given to them.
 They use their strengths and limitations to make the best of a
situation.
 They must also be decisive and know how to own up to their
decisions.
 They know how to unite the team and bring out the best in every
employee.
…core traits of entrepreneurs
2. COMMUNICATORS
 Entrepreneurs know how to use all forms of
communication to effectively share ideas and address
certain concerns with their customers or employees.
 Communication channels between entrepreneurs and
their employees or customers should always be open to
ensure the smooth flow of operations in their business.
…core traits of entrepreneurs
3. SPECIALISTS
 Entrepreneursare tactical and are very keen with details.
 They understand the totality and specificity of their
business.
 Theyenjoy being in action instead of being behind the
scenes.
…core traits of entrepreneurs
4. Problem Solvers
 Entrepreneurs possess critical thinking skills and look at
problems as challenges or puzzles that they need to solve.
 They know how to handle issues in any area of the business, be
it finance, operations, or marketing.
 They are able to solve problems by immersing themselves in
day-to-day activities, knowing what is happening in and out of
their business.
 They should also be aware of their employee’s personalities;
they must know how and when to use them to help solve the
problems.
 They must have faith that every problem has a solution no
matter how hard it is.
 They must also be courageous and know how to face the
consequences of their decisions.
ENTREPRENEURSHIP
OR
EMPLOYMENT?
 Important Career Entrepreneur
Factors
1. Income • Income generated passively even when the
entrepreneur is resting
• Opportunity income unlimited, depending
on the success of the business.
• Income only earned when the business is
successful.
2. Hiring and Firing, • Provides jobs; is the owner of the business
Organizational Setup, and conducts the talent selection.
and Major Key • Fully responsible for serving customers,
Results Areas making the business profitable/sustainable,
and providing employee satisfaction.
• Has the power to disengage nonperforming
employees applying the due process policy of
disengaging personnel.
• Can venture into expansion of business such
as franchising and buying other similar
businesses.
Employee
• Income generated actively; no
work = no pay
• Income usually fixed per month
and increases every year
depending on the employer and
the employee performance.
• Seeks for a job; is the one
applying for a job and is
interviewed by the company’s
hiring officers.
• Has the goal of satisfying only
the employer or the direct
supervisor.
• Fully dependent on the
employer’s performance.
• Can only work for the current
employer exclusively.
 Important Career Entrepreneur
Factors
3. Daily Tasks • Performs all necessary variable tasks to
establish and manage a startup business,
which usually takes most of the
entrepreneur’s time; spend more hours on
work than a regular employee and sometimes
gets no sleep.
• Prepares policies, procedures, and
memoranda for the business.
4. Leisure Time and • Has a flexible schedule and can take
Vacations unlimited number of vacation days
(applicable only if the business as stabilized
already)
5. Taxation • Taxed on the net income; can claim taxable
income deductions for allowable expenses
incurred by the business.
Employee
• Has the routine tasks and works
on regular or normal hours.
• Follows policies, procedure, and
memoranda from the employer.
• Has a limited number of
vacation days imposed by the
employer.
• Taxed on the gross income;
cannot use expenses incurred
related to the job such as food
and transportation expenses to
claim for deductions from
taxable income.
 Important Career Entrepreneur Employee
Factors
6. Comfort Level at • Is comfortable in doing multiple and • May be comfortable with
Work challenging tasks and takes accountability routines and minimal risks; may
with the risks and profits of the business; also be comfortable in working
does not want to be confined in a box; thinks for the company itself.
outside the box or sometimes thinks there is
no box.
 Careers in
Entrepreneurship
“ When you love what you do, it’s as if you are not working.”
 Most Common Small Businesses in the
Philippines
1. Sari-Sari Store 11. Hair, styling and makeup business
2. Rice retailing 12. Spa, gym, nail care business
3. Food cart business 13. Video and photography business
4. Printing business 14. Tutorial business
5. Buy-and-sell business 15. Baking business
6. Street food business 16. Web site development and
design/blogging
7. Flea market business or “tiangge”
17. Direct selling business
8. Online selling business
18. Car wash and car care business
9. Cellphone loading business
19. Bar, café, and restaurant
10. Laundry and dry cleaning business
20. Water station and LPG station
 Franchise or Startup Businesses
• Bakeries, bakeshops, and bread • Food and snack carts
products
• Gas stations/petroleum products
• Bars, café, and coffee shops
• General merchandise and retail
• Beverage and confectionery
• Health and wellness (salon,
• Car café massage, spa and gym)
• Clothing and accessories • Schools
• Convenience stores • Services (personal and business)
• Drug stores and pharmacies • Water stations
• Fast food establishments and
restaurants
 Other Business Opportunities
• Dealerships
• Direct selling
• Distributorship

Franchising is a business arrangement wherein the

franchisor, who is the owner of the business, acquires distribution centers
through the franchisees or the affiliated dealers.
Reference:
Batisan R. (2016). Entrepreneurship. Diwa Learning Systems, Inc.
ASSESSMENT
(Quiz #1)
Entrepreneur or Employee?
I. Write EN if the statement describes an entrepreneur and
EM if it describes an employee.
1. He/She prepares policies, procedures, and memoranda for
the business.
2. Income is generated whether the business is successful or
unsuccessful.
3. He/She can disengage nonperforming employees, applying
the due process policy of disengaging personnel.
4. Has an 8-10 working hours per day.
5. He/She is taxed on the gross income.
Entrepreneur or Employee?
6. Has the goal of satisfying the customers.
7. Requires internal motivation.
8. Most likely to be a preemptive type of
person with regard to managing his/her
money.
9. He/She thinks outside the box.
10. Income generated actively.
 True Or False?
II. Write A if the first statement is true, B if the second statement is
true, C if both statements are true, or D if neither of the two is true.
1. A.) An entrepreneur to be decisive should know how to assess
the net cause and effect of an opportunity and decide intelligently
if a venture should be considered or not.
B.) The five levels of entrepreneurial activity include the self-
employed, the manager, the leader, the investors, and the true e
ntrepreneur.

2. A.) Entrepreneurship disperses the economic power and creates

equality.
B.) Entrepreneurship produces more jobs that equate to an
increase in national income.
True Or False?

3. A.) Franchising is a business

arrangement wherein the franchisee, who
is the owner of the distribution centers,
gave the right to use the firm’s business
model and brand for period of time to a
franchisor.
B.) As leaders, entrepreneurs enjoy being
in action instead of being behind the
scenes.
4. A.) To show leadership, entrepreneurs need to
scold their employees if he/she repeatedly
made mistakes for him/her to be aware of what
to do and not to do.
B.) Leadership is the core of every
entrepreneur.

5. A.) Being a communicator is one of the core

competencies of an entrepreneur.
B.) Entrepreneurs must take all the risks all
the time to become successful.
Essay
Give at least 3 issues that impede Philippine
entrepreneurs to succeed or even start their
own enterprise. Explain briefly.