CBME1: Business Organization and Management|| Module Content || Week 11||Lesson:

Module 11

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Course Description This course provides students with the opportunity to develop a range of soft
skills and business acumen necessary to maximize the likelihood of success in
an entrepreneurial environment. Topics include the four fundamentals of
management: planning, organizing, leading and controlling. The aim of this
unit is to enable students to acquire leadership skills and knowledge of general
management, with entrepreneurial leadership at the core. The unit provides
theoretical understanding and practical application of entrepreneurial
leadership. The course is also designed to provide essential knowledge and
leadership skills to meet the challenges of entrepreneurial leadership in the
21st Century. It is based on the premise that the modern intelligent
organization—whether it be a start up, SME or a large established company—
must adapt and change using leadership and entrepreneurial skills. The unit is
designed to impart specific knowledge, raise awareness of business growth,
provide basic business and scientific/entrepreneurial leadership skills and instill
students’ capability to examine, analyze and evaluate various leadership
theories that are essential for business improvement
Course Learning At the end of the course, students are expected to:
Outcomes
 Present images of well-known entrepreneurial leaders
 Explain about the entrepreneurial aspirations
 Identify the challenges of the entrepreneurs

Evidence of The teacher will facilitate the following assessment:

Learning/
Assessment Tools 1. Minute Paper / Muddiest Point (Activation of Prior Knowledge)
2. Socratic questioning
3. Illustration work
4. Learning by Doing
5. Discussion
6. Brain Writing
7. Quiz

Topics (Coverage) This module covers the following topics:


Target This course is offered to the first year students taking up Bachelor of Science in
Participants Entrepreneurship with Specialization in Microfinance.
Learning Time: Module 1
Means for Learner Students may contact teacher for assistance and guidance to the following links:
Support Email: gonobutchcarlo@gmail.com
Messenger: butchgono@yahoo.com
Mobile No.:09264282731

Summative For overall assessment of this module, the student will create Rubrics/Stand
Assessment and discuss their own value chain and will take long quiz to ards
validate their learning.
(See Module
Instructions)

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INTRODCUTION:

A new day has come with so many new opportunities for you. Grab them all and make the best
out of your day. Here’s me wishing you a blessed day everyone!

Welcome to your Entrep 8: Entrepreneurial Leadership course, where you will learn big

picture of management concepts, processes and techniques as practiced today in business,
industry, and government.

Together, let’s discover the art of getting people together on a common platform to
make them work towards a common predefined goal.

Have bundle of patience and enjoy this brand new learning journey! 
Icon Used in this module

To guide you through your offline module, we include icons. Here’s what they mean:

Activation of prior knowledge icon.

These include introduction of the topic and preliminary activities and/or exercises (not graded)

Acquisition of new knowledge icon.

This is the learning part of the module where content about the topic/lesson is being discussed.

Acquisition of new knowledge icon (for online references transcription)

This is the learning part of the module where other learning tools such as video or e-books about
the topic/lesson is being discussed.

Application of acquired knowledge and/or competency icon.

This learning part of the module where the acquired competency and knowledge will be practiced
(not graded)

Application of acquired knowledge and/or competency icon.

This learning part of the module where the acquired competency and knowledge will be practice
(graded)
Assessment of acquired knowledge and/or competency icon.
This learning part of the module where the acquired competency and knowledge will be evaluated
through different assessment activities (graded)

Timeline icon.
This part of the module indicates the activity timeline as guide for the students (instructions,
submissions dates and other announcements).

Rubrics icon.
This part of the module indicates how the student activities will be graded.

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Activate your prior knowledge

*You can type this and send a soft copy to my email or write in yellow pad or bond paper.

Welcome to Module 1 of your course TRACK 1: Product Research and Development

Title: PRODUCT CONCEPT

Our objectives for this topic are the following:

• Present images of well-known entrepreneurial leaders

 Explain about the entrepreneurial aspirations
Identify the challenges of the entrepreneurs

Acquire new knowledge

Watch this video on Staffing and Management Function via, https://www.youtube.com/watch?

v=FxyJWf_PsQU

What is Entrepreneurship?
Entrepreneurship is considered to be vital component in the process of economic growth and
development for various reasons. It is a mechanism by which society converts technological information
into products and services.
The modern entrepreneurship definition is also about transforming the world by solving big
problems. Like initiating social change, creating an innovative product or presenting a new life-changing
solution.

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What is an Entrepreneur?
Are the creators and builders of new ventures that not only fulfill their own dreams, bring them huge
fortune but also make a strong impact on the society and improve the lives of people.
“An entrepreneur is not an innovation but an organization builder or one who has the skill to build an
organization and who must not be able to harness the new ideas of different innovators to the best of the
organization”. ~Essentials of Entrepreneurship (3G Elearning, 2016)
“Entrepreneur as one who always searches for change, responds to it and exploits it as an opportunity.
Innovation is the specific tool of entrepreneurs, the means by which they exploit change as an
opportunity for a different business or service”.~ Peter F. Drucker
A simple definition of leadership is that leadership is the art of motivating a group of people to act towards
achieving a common goal.
Entrepreneurial leadership as "organizing a group of people to achieve a common goal using proactive
entrepreneurial behavior by optimising risk, innovating to take advantage of opportunities, taking personal
responsibility and managing change within a dynamic environment for the benefit of an organization“
~Roebuck, Chris (2011-12-22)
Entrepreneurial leadership is effectively using the skills associated with successful individual
entrepreneurs and applying those within the environment of a larger organisation. This especially means
within an organisation where those skills have been lost and replaced with a "corporate" mindset that
focuses on process, systems and risk minimisation rather than on entrepreneurial behaviour. ~Roebuck,
Chris (2011-12-22)

Top 12 Filipino Entrepreneurs:

1. MANUEL VILLAR
Manuel “Manny” Villar is a Filipino Billionaire businessman with a net worth of $ 6.7 Billion
(11/4/2019, according to Forbes). He is the #2 richest Filipino. Villar is the chairman of
STARMALLS and VISTA LAND AND LANDSCAPES.

In 1975, with an initial capital of ₱10,000, Villar purchased two reconditioned trucks and started a
business delivering sand and gravel for construction companies in Las Piñas.
Villar took out a seven-year loan from a rural bank offering low interest rates. From the loan, he
kick-started building and selling homes at his first project, Camella Homes Phase 1 and 2 in Las
Piñas, initially with 160 units and would have resulted to be the country's largest home building
company, with an emphasis on low-priced mass housing.
The number of homes built by Villar's companies totaled to over 200,000 units.
In 1984, he founded Golden Haven Memorial Park, a chain of cemeteries in the Philippines,
started with its first branch in Las Pinas and expanded in Cebu, Cagayan De Oro, Zamboanga,
Bulacan, and Iloilo. It will also expanded into the businesses of memorial chapel, crematorium
and columbariumIn 2015, the MB Villar Group formed another company, Vitacare Healthgroup,
Inc., a group that will build chain of hospitals nationwide. Its first project Vitacare Unimed Hospital
& Medical Center (in partnership with Unimed) will be located in Vista City, Las Pinas will be fully
operated in 2018
Manny Villar also ventured into coffee shop business, Coffee Project (formerly The Coffee
Project) which has now 31 stores across the country.

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2. Lucio and Susan Co

The husband and wife team has a net worth of $1.8 B as of 11/4/2019. They are ranked #14 as
richest Filipino. They are the owners of PUREGOLD Price Club store with 350 stores across the
Philippines. The family has interests in gaming, hotels and wine distribution. Lucio is the group’ s
chairman, Susan serves as the vice chairman, while their son Vincent serves as the President.
Lucio Co is the owner and chairman Cosco Capital, Inc., a publicly listed company that started
out as an oil and mineral exploration and development corporation called Alcorn Gold Resources
Corporation, which later changed its name to Alcorn Petroleum and Minerals Corporation.
It was 1997, and the Asian financial crisis was at its peak. The Philippine Peso weakened, and
prices for basic goods started to rise.
Lucio and Susan Co, out of genuine care for their employees, risked it all and ventured into the
retail industry, They opened up the first branch of Puregold Price Club along Shaw Boulevard in
Mandaluyong City on December 12, 1998 and they’ve never looked back since.
With over 70 hypermarkets, discount stores and supermarkets, Puregold Price Club now follows
Henry Sy's SM Group which is the largest retailing company in the country. The company started
with a Hypermarket in 1998 which targets middle and low-income consumers.
3. Ramon Ang
Ramon Ang is the President and Vice Chairman of one of the nation’s oldest conglomerates, SAN
MIGUEL with a net worth of $2.3 B. He also owns a hotel with 100 acres of prime real estate. Ang
started out by fixing and selling used Japanese car and truck engines later, with Eduardo
Cojuangco, now a billionaire, he sold aluminum wheels.
More than 40 years ago, he was a working student who did odd jobs after classes to support
himself, help his family and fund his schooling.
In a speech before the university’s 2018 graduating class, he acknowledged that it was those
years where he learned how to do business from the ground up that formed his skills, and set a
proper foundation for long-term success. He developed the abilities to deal with people from all
walks of life, read and understand individuals and their motivations and abilities, adapt to any
situation no matter how challenging, and “make tough decisions based on gut instincts.” SMC
owner Eduardo Cojuangco
He ran the business Cojuangco entrusted him with honesty and diligence during the shaky
moments when the taipan left for overseas following the EDSA Revolution.
Years later, upon his return, Cojuangco rewarded Ang’s integrity and leadership by making him
his successor in SMC and selling him a majority of his shares.
Asked by the FEU students the keys to his unceasing success, Ang voiced the elements of his
own code of honor, which others who want to follow in his footsteps would do well to heed: “Be a
man of your word. Work harder than anybody else. Be decisive. Be a risk-taker. Nothing is
impossible.”
4. Andrew Tan
Andre Tan is a Chinese Filipino billionaire with business interests in liquor, fast food, and real
estate. He is one of the top richest Filipinos according to Forbes with a net worth of $2.5 B. Tan
runs the Alliance Global Group Inc. (AGI) composed of companies: Megaworld Corporation,
EMPERADOR Distillers, Inc., and Golden Arches Development Corporation that operates
MCDONALD’s franchises.
Andrew Tan grew up in downtown Manila dreaming of someday owning a store or small business
like many of his peers’ families

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“While I was in college, the families of some of my classmates owned textile stores, others
hardware stores. My dream then was to own and operate a small grocery store,” Tan says
The young Andrew studied accounting and graduated with honors at the University of the East,
often preferring to walk to school instead of riding public jeepneys in order to save money.
Engineer Conrado Acedillo, himself a self-made man in the air-conditioning business, recalls that
he and the younger Tan used to be employees of Taipan Leonardo Ty of Union Hitachi,
Ajinomoto and other businesses. He remembers Andrew Tan as one of the most hardworking
and conscientious employees of the late Leonardo Ty.
One of the amazing accomplishments of the self-made businessman is his unexpected success
in making his homegrown Emperador Brandy into the world’s largest-selling brandy in terms of
total number of bottles sold in 2006.

5. Tony Tan Caktiong

Tony Tan Caktiong is the man behind the country’s famous bee. He is a Chinese-Filipino
Businessman and the founder of Filipino Fast Food Chain JOLLIBEE with a net worth of $3.4 B.
Caktiong founded Jollibee in 1978 after having started it as an ice cream parlor in 1975.
6. George Ty
George Ty is a Filipino banker and businessman with a net worth of $3.6 B. He is the founder of
Metropolitan Bank and Trust Company (MBTC). He was also the owner of the G.T. International
Tower in Makati, as well as the owner of hotels under Grand Hyatt and MARCO POLO Brands.
7. David Consunji
David Consunji was born to a middle class family in Hermosa, Bataan. Consunji is the founder of
DMCI Holdings, Inc with a net worth of $3.68 B. He started his construction business as nothing
more than a small contructor
in 1954. He was a former secretary of Department of Public Works, Transportation from 1970-1975
during the Marcos Administration. He also has stakes in the country’s largest coal miner, listed
subsidiary, SEMIRARA MINING.
8. Jaime Zobel De Ayala
Jaime Zobel de Ayala is the Chairman and Chief Executive Officer (CEO) of Ayala Corporation
with a net worth of $3.7 B. He succeeded his father as the company’s President and CEO in
1994. Zobel is also the Chairman of GLOBE Telecom, BANK OF THE PHILIPPINE ISLANDS
(BPI), and Integrated Micro electronics Inc. (IMI).He also serves as Co-Vice Chairman of
Mermac, Inc.
9. Lucio Tan
Lucio Tan was once the longest running richest man in the Philippines not until his great rival,
Henry Sy took over the throne. Tan is a Chinese- Filipino billionaire with a net worth of $4.2 B. He
has interests in airline, banking, tobacco, liquor, real estate industries and education. In 1966,
Tan started his own cigarette company named Fortune Tobacco. He also established and put up
Asia Brewery in 1982. Now a subsidiary of LT Group, the brewery was the only one then to
compete with the market leader San Miguel. Also, in 1993, Tan secured control of the country’s
airline carrier PHILIPPINE AIR LINES (PAL).
10. Enrique Razon, Jr.
Enrique Razon Jr., is a Filipino billionaire with a net worth of $4.3 B. Razon is also known as
“Ports King”, since his knowledge on how to control of where to put a port is, used him as a key to
becoming one of the country’s richest business tycoons. His investments came from their family
business, the International Container Terminal Services (ICTSI), which is the largest port operator
in the Philippines. Razon serves as the Executive Chairman and Chief Executive Officer of
Bloomberry Resorts Corporation. He is also the Chief Executive Officer and President of
INTERNATIONAL CONTAINER TERMINAL SERVICES, INC.

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11. John Gokongwei

John Gokongwei is the second richest Businessman in the Philippines with a net worth of $5.5 B.
He was born in China to a Filipino-Chinese father who was a scion of a wealthy Cebu-based
family. Unfortunately, at the age of 15 he had to work to provide for his family since they became
flat broke. He sold roasted peanuts and opened up a small stall in the market. He even sold soap,
candles, and threads to earn money. Fortunately, with his determination, JG Summit Holdings,
Universal Robina Corporation, Robinsons Corporation, and CEBU PACIFIC are all Gokongwei’s
fruits of labor.
12. Henry Sy
Henry Sy has a net worth of $18. He is a Chinese-Filipino businessman and the founder of SM
Prime Holdings. In 1958, Sy opened the first Shoe Mart store and has since evolved into a
dynamic group of companies with five lines of businesses-shopping malls, real estate
development and tourism, retail, financial services, hotels and conventions. Forbes Magazine
listed him as one of the richest man in the Philippines for ten years in a row.
13. Dr Jaime Aristotle B. Alip
Jaime Aristotle Alip is a Social Entrepreneur, and the Founder and Chairman Emeritus of the
CARD MUTUALLY REINFORCING INSTITUTIONS, a group of companies composed of a
foundation, a bank, a microinsurance, a development institute, and a business development
service. The companies were established to empower poor women on the countryside, to help
alleviate poverty in the Philippines. CARD is the largest microfinance institute in the Philippines.
Dr. Alip has won several awards for his work, such as the prestigious Ramon Magsaysay
award in 2008 for public service.
14. Bobby Murphy
He is Filipino-American, 31 years old. Real Time Net Worth is $ 3.4 Billion as of 11/4/2019. He is
ranked 217 by Forbes. He is the co-founder of Snapchat, the social media app
15. Kylie Jenner
At 21 years old, a celebrity-turned-make up mogul is the youngest self-made billionaire ever. Real
Time Net Worth is $ 1 Billion as of 11/4/2019. She owns Kylie Cosmetics.

Characteristics of an Entrepreneur
1. Vision
An entrepreneur has a dream and he visualizes the ways and means to achieve dream. He
visualizes a future for his business venture.
2. Confident
It is a hallmark of the entrepreneur. Many gain their sense of self-estemm and faith in their ability
to greet challenges and by seeing the results and gaining the praise and respect of others.
3. Feels a Sense of Ownership
Taking responsibility for getting things done and doing them with care and attention means to act
like an owner. The clever entrepreneur uses individual accountability in the ultimate pursuit of
profitability, teamwork, and overall sucess.
4. Able to Communicate
Entrepreneurs recognize that the most important part of any business is the human element.
Communication is the key to successful relationships with people. The entrepreneur develops a
keen ability to listen and hear what others are trying to say, because the best communications got
that way by first being the best listener.
5. Team Player
Entrepreneurs are team players who know how to succeed by employing the physics of
interpersonal synergy and dynamic relationships. One twig can be easily snapped, but a bundle

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of those small twigs becomes stronger than the sum of its individual parts and can be impossible
to bend, much less break.
System-Oriented Good systems allow us to reproduce great results every time with less and less
exertion of energy or resources. Designing, implementing, and perfecting systems is one of the
most useful and rewarding skills of an entrepreneur.
6. Dedicated
Entrepreneurs dedicate themselves to the fulfillment of their plans, visions, and dreams, and that
tenacity of purpose generates electricity throughout the whole organization.
7. Grateful
Being grateful for what we have opens us up to receive more, and one reason that is true is
because those who are grateful appreciate what they are given.
8. Optimistic
A positive outlook is essential for the entrepreneur, who learns to see setbacks as bargain priced
tuition for the valuable business lessons gained through firsthand experience.
9. Knowledge
An entrepreneur has full knowledge about all the technicalities of his business - be it
technological, operational, financial or market dynamic.
10. Desire to Success
An entrepreneur has a strong desire to succeed in life. Their dreams are not just limited to
achieving one single goal but they constantly work to achieve higher goals.
11. Independence
An enterpreneur need independence in work and decision-making. They do not follow the rules of
thumb but make their own rules and destiny:
o Optimism - positive outlook;
o Value Addition - entrepreneurs do not follow the conventional rules of thumb, they have a
constant desire to introduce something new; they create, innovate or even add value to the
existing products/services;
o Leadership - entrepreneurs are good planners, organizers, have a good communication skill,
good decision makers, take initiative to implement plans and are result-oriented;
o Hardworking - at times they are called workaholics, they put in continuos efforts to achieve
success and know that there is no substitute for hard work;
o Risk-taking Ability - risk is an inherent and inseparable element of entrepreneurship. He
assumes the uncertainty of future.

12. Passion for the Business

The number one characteristic shared by successful entrepreneurs: passion for their business;
business; stems from the entrepreneur is entrepreneur’s belief that the business will positively
influence people’s lives. For social entrepreneur’s passion is what drives them to bring about the
change that they so desire in the environment or social aspect.
13. Money Management
Entrepreneurs start viewing money as a resource.
14. Creative Thinking
It is normally associated with the right side of the brain. This ability allows entrepreneurs to view
resources in a completely different aspect than normal individuals.

Entrepreneurship Traits

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1. Mental Ability
consists of intelligence and creative thinking. An entrepreneur should be intelligent and must have
an analytical mind and have the capacity to analyze the problem under which decision have to be
made
2. Clear Objective
successful entrepreneur must have the objective to establish his product in the market, make
profit and render social service.
3. Business Secrecy
an entrepreneur must be able to guard business secrets. Leakage of business secrets to trade
competitors is a serious matter
4. Human Relations Ability
an entrepreneur must have good relations with his customers to earn profit and win their
confidence in his product. He must also maintain good relation with his employees.
5. Effective Communication
good communication means that the entrepreneur has the ability to put his point effectively and
with clarity. Communication ability is the secret of the success of most entrepreneurs.
6. Technical Knowledge
the entrepreneurs are dealing with situations where sophisticated technology is involved. The
entrepreneur must have a reasonable level of technical knowledge.
7. Decision-making
The entrepreneur should have the capacity to analyze the various aspects of the business for
arriving at a decision.
8. Risk-bearing
higher risk, higher profit; risk is inherent and inseparable element of entrepreneurship. He
assumes the uncertainty of future
9. Self-confidence
entrepreneurs must have the mental capacity to face any situations. They should also have the
ability to inspire other. They must have the confidence in themselves and the determination to
achieve their goals.
10. Highly Self-motivated
successful people go out into the world and invoke change through their actions. Leaders enjoy
challenges and will work tirelessly to solve problems that confront them.
11. Serial Innovator
entrepreneurs are almost defined by their drive to constantly develop new ideas and improve on
existing processes.

Qualities of Entrepreneurs
 Planner
 Entrepreneur has a strong desire to achieve a higher goal and make their dreams come
true. So the entrepreneur must have these quality to achieve that target an entrepreneur
cannot achieve the target.
 Technician
 an entrepreneur must have the technical knowledge. He should know how to use the
resources and achieve target.
 Motivator
 He inspires the employees to achieving the target

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 Future Oriented
 entrepreneur shows a high level of future orientation. They do not allow the past to
obsess them. They are oriented towards present and future.
 Interpersonal Skills
 An entrepreneur is a person who during the course of his activities he should be a person
who likes working with people and who has skills of dealing with people.
 Disciplined
 these individuals are focused on making their businesses work, and eliminate any
hindrances or distractions to their goals
 Competitive
 many companies are formed because an entrepreneur knows that they can do a job
better than another
 Creativity
 one facet of creativity is between able to make connections and seemingly unrelated
events or situations. They will repurpose products to market them to new industries.
 Determination
 entrepreneurs are not thwarted by their defeats. They look at defeat as an opportunity for
success. Success full entrepreneurs do not believe that something cannot be done.
 Strong Work Ethics
 successful entrepreneur will often be the first person to arrive at the office and the last
one to leave. Their mind is constantly on their work, whether they are in or out of the
workplace.

Types of Entrepreneurs
 Classified according on the basis of:
 Ownership
 Types of Business
 Stages of Development
 Entrepreneurs

 Classified on the basis of Ownership

 Founder or Pure Entrepreneur
 those individuals who are the founder of the business. They are the ones who
conceptualize a business plan and put in efforts to make the plan a success.
 Second-Generation Operators of Family-Owned Business –
 they are individuals who have inherited the business from their fathers and
forefathers.

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 Franchisees
 it is a method of doing business wherein the parent owner licenses his
trademarks and tried and proves methods of doing business to a franchise in
exchange for a recurring payment.
 Owner-Manager
 when a person buys a business from the founder and then invests his time and
resources in it, he is called the owner-manager

 Classified on the basis on Type of Business

 Industrial Entrepreneur
 is an entrepreneur who is into manufacturing of a product. He identifies the
needs and wants of customers and accordingly manufactures products to satisfy
these needs and wants.
 Trading Entrepreneur
 is one who undertakes trading activities and is not concerned with the
manufacturing of products. He identifies potential markets, stimulates demands
and generates interest among buyers to purchase a product.
 Corporate Entrepreneur
 is a person who demonstrates his innovative skills in organizing and managing a
corporate undertaking which is registered under some act that given it a separate
legal entity.
 Agricultural Entrepreneur
 Are those entrepreneurs who undertake business related to agricultural activities.
 Classified on the basis on Stages of Development
 First Generation Entrepreneur
 is one who starts an individual unit by means of a innovative skill. He is
essentially an innovator combining different technologies to produce a market
able product or service.
 Modern Entrepreneur
 is one who undertakes business to satisfy the contemporary demand soft he
market.
 Classical Entrepreneur
 a stereo-type entrepreneur is one whose aim is to maximize the economic
returns at a level consistent with the survival of the firm, with or without element
of growth
 Classified on the basis on Entrepreneurs
 Innovative Entrepreneur
 are full of creative ideas and offer innovative products to the society.
 Imitative Entrepreneur

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 adapt a successful innovation. They are risk-aversive and so they do not try out
new ideas or products
 Drone Entrepreneur
 are not open to creativity and change. They do not like changing the working of
organizations with the changing times. E.g McDonalds, Jollibee, etc.
 Social Entrepreneur
 is primarily motivated by a deep desire to improve upon, or fundamentally
change, prevailing and detrimental socio-economic, educational, environmental
or health conditions.
 Serial Entrepreneur
 Consistently conceptualizes and executes business models that he intends, ultimately, to
sell to shareholders, investors, or other businesses.

Functions of Entrepreneurship
 Risk Taking and Uncertainty Bearing The future is unpredictable; the entrepreneur has to take
risks in these circumstances.
 Taking Business Decisions
He has to formulate an action plan to foster high quality on the product to be produced. He has to
evolve the best possible method of production which would earn him sizeable profit.
 Managerial Functions
The entrepreneur arranges finance, purchase raw materials, provides the necessary
infrastructure for production.
 Decision Making Function
The most vital function an entrepreneur discharges; the selection of the best course of action that
bears greater benefit than sacrifice.
 Innovation
Introduces far-reaching improvements in the quantity and quality of production line and considers
the economic viability and technical feasibility of an innovation.
 Coordination
Involves selection of the right type of factors, employment of each factor in the right quantity, use
of the best technical devices, division of labor, and reduction of waste.
 Environmental Analysis –
classified as internal environment –are controllable; and external environment- are beyond the
control of the business.
 Identifying Entrepreneurial Opportunity
An entrepreneur has to keep his eyes and ears open and require imagination, creativity and in
formativeness.
 Turning Ideas into Action

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An entrepreneur should be capable of turning his ideas into reality; collects information regarding
the ideas, products, practices to suit the demand in the market.
 Organizational Function
Entrepreneur as an organizer and organizing function which brings together various factors of
production, ensures continuing management and renders risk-bearing functions as well.

ROLES AND IMPORTANCE OF ENTREPRENEURSHIP IN ECONOMIC GROWTH

 Employment Generation
 enterprise being established by the entrepreneur grow provides direct and indirect
employment to many more. Entrepreneurship is the best way to fight unemployment.
 National Income
 entrepreneurship increases the national income through generation of product and
service both in imports and exports.
 Dispersal of Economic Power
 When the number of entrepreneur increases, a large amount of national wealth is also
shared by a large number of entrepreneurs, thus dispersing wealth. This dispersal of
wealth promotes the real socialism and makes the economy healthy
 Balance Regional Development
 The growth of industry and business leads to a large number of public benefits like road,
transport, health, education, and entertainment. A rapid development of entrepreneurship
ensures a balance regional development.
 Economic Independence
 Entrepreneurship is essential for national self-reliance.
 Improvement in Living Standards
 Entrepreneurs setup industries which remove scarcity of essential commodities and
introduce new products
 Harnessing Locally Available Resources and Entrepreneurship
 A few large scale industries started by entrepreneurs from outside the state in
economically backward areas may help as models of pioneering efforts, but ultimately the
real strength of industrialization in backward areas depends upon the involvement of local
entrepreneurship in such activities.
 Innovations in Enterprise
 Business enterprises need to be innovative for their survival and better performance.
Small firms are expected to result in more innovations and make the industry compete in
international market.

THE ENTREPRENEUR’S TASK

 If all requirements in a capitalist economy are in place, the entrepreneur can assume his
assigned role in the development in the economy. This made possible because the surviving
enterprises are responsible for providing the following:

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1. Products and services for customers and producers;

2. Employment;
3. Taxes;
4. Demand for suppliers’ products and services; and
5. Training facilities for future entrepreneurs.

THE ETHICAL AND SOCIAL RESPONSIBILITIES OF ENTREPRENEUR

 Ethics
 is the study of moral obligation involving distinction between right and wrong.
 Business Ethics
 refers to the rule about how entrepreneurs ought to behave. This business ethics
paved the way for the adaption of the general rule of the society.
 Code of Ethics
 In a business, a formal document indicating the entrepreneurships adapted principles of
appropriate behavior.
 Ethical issues’ concerning entrepreneurship arises between the (a)company and the
customer, (b) the company and its personnel, (c) the company and its business
associates, (d) and the company and the investor (e) the company and financial
community.
 When ethical abuses are committed, the most probable victims are the customers. As
entrepreneurs, customer rights should be provided like the (a) right to be safe, (b) the right to
be informed, (c) the right to choose and (d) the right to be heard.

INFLUENCE, POWER, POLITICS AND ETHICS FOR LEADERSHIP

 The ability to get someone to do something you want done or the ability to make things the way
you want them to.
 is the ability to make others do things they wouldn't otherwise want to do. We tend to think of
power as being a property of the person, but this is really shorthand. Power is really a relation
between two people.
What is the basis of power?
According to Richard Emerson (1962), the basis of power is Dependency. A depends on B if A has
goals and needs that B can fulfill.
For example, an employee (A) depends on her company (B) for a paycheck. Similarly, a company
depends on its employees for labor, skills and brains.
 Two Functions of Dependency Power Theory: Demand & Supply

 Demand defined as the motivational investment by A in goals mediated by B. In other

words, how much A needs what B controls.

Example: Doctors supply life-saving functions; Bosses supply raises and promotions

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 Supply defined as the availability, quality and cost of alternative means of satisfying
needs. In other words, how easy it is for A to go elsewhere to get what B controls.
 Example: Doctors supply life-saving functions; Bosses supply raises and promotions

Five Sources of Power

 Referent or Personal Power
 the ability of leaders to develop followers from the strength of their own personalities.
 Expert Power
 the ability to control another’s behaviour because of the possession knowledge,
experience, or judgment that the other person does not have but needs.
 Legitimate or Position Power
 stems from an authority's legitimate right to require and demand compliance
 Reward Power
 the extent to which a manager can use extrinsic and intrinsic rewards to control other
people.
 Coercive Power
 the extents to which a manager can deny desired rewards or administer punishment to
control other people.

Three Bases of Power

 Utilitarian Power
 is power based on a system of rewards or punishments.
 Normative Power
 is power which rests on the “beliefs of the members” that the organization has a right to
govern their behaviour.
 Coercive Power
 involves forcing someone to comply with one's wishes.

Possible Responses to the Use of Power

 Resistance
 resisting the request without apparent cause or in an arrogant manner. This is most likely
response to Coercive Power.
 Compliance
 complying with the request by meeting minimal expectations while withholding extra
effort. Legitimate and Reward Powers usually results in Compliance..
 Commitment

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 Enthusiastic release of energy and talent to satisfy the leader’s request. Referent and
Expert Powers are most likely to produce commitment.

IMPRESSION MANAGEMENT
 It is a process in which individuals try to influence the perceptions people have about something,
a person, or an event.
 Impression management may be a conscious or subconscious process.
 “A process whereby someone tries to influence the observations and opinions of others about
something.”
 If you are an impression management professional, you attempt to influence the observations
and opinions that consumers have of your products.
There are Two main motives we have for trying to manage the impressions of others:

 Instrumental Motives

it includes what we have already mentioned: “the desire for increased self-esteem”. (e.g. respect,
friends, acceptance, money)

 Expressive Motives

it comes down to wanting to be in charge of one’s personal behaviour and identity. It can come
from a response to social norms, expectations or restrictions, and it seeks to show others
something different.

Ready for the drill? Let’s have an application activity!

Assessment: Video Blog Creation

Mechanics & Guidelines:

1. Choose among the Five Sources of Power and make a video blog.

2. Choose an interesting topic/theme or situation that connect and signifies from the Source of
Power you select. It should be an negative or positive issues.

3. The topic must begin with a “QUESTION” about the issues.

4. Include the Three (3) Possible Responses to the Use of Power after giving the Information about
your topic.

Criteria For Judging:

 CREATIVITY – 40%
o Overall concept and story line must be from the participants ideas.
 CONTENT – 30%
o This is the overall script. The participant should be able to give a interesting topic/theme
from their chosen Source of Power. The VLOG must contain an information that could
educate outside business leaders and students.

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 EDITING – 30%
o This is how the video must be edited. Sequencing, background music, sound effects,
and cut-to-cut editing style (fast transition). The video must be in a High Definition of
Graphics and Sounds. Widescreen must be 16:9 inches.

Assessment of New Knowledge

Now let’s evaluate the level of competency you acquire throughout the topic. Heads up and take the
activities with high motivation.

Assessment

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Assume that you are belong to this family; How will you help your family and give them a good future?
Choose one or more characteristics of an Entrepreneur that you want to develop.

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References and Supplementary Materials

Books and Journals

1."Organizationalculture". BusinessDictionary.com. Retrieved 2019-08-11.
2.     ^  Ravasi, D.; Schultz, M. (2006). "Responding to organizational identity threats: Exploring the
role of organizational culture". Academy of Management Journal. 49(3): 433–
458. CiteSeerX 10.1.1.472.2754. doi:10.5465/amj.2006.21794663.
3.     ^  Schein, Edgar H. (2004). Organizational culture and leadership (3rd ed.). San Francisco:
Jossey-Bass. pp. 26–33. ISBN 0787968455. OCLC 54407721.
4.     ^  Schrodt, P (2002). "The relationship between organizational identification and organizational
culture: Employee perceptions of culture and identification in a retail sales
organization". Communication Studies. 53 (2): 189–202. doi:10.1080/10510970209388584.
5.     ^  Jump up to:a  b  c  Schein, Edgar (1992). Organizational Culture and Leadership: A Dynamic View.
San Francisco, CA: Jossey-Bass. pp. 9.
6.     ^  Jump up to:a  b  c  d Deal T. E. and Kennedy, A. A. (1982, 2000)  Corporate Cultures: The Rites and
Rituals of Corporate Life, Harmondsworth, Penguin Books, 1982; reissue Perseus Books, 2000
7.     ^  Jump up to:a  b  c Kotter, J. P.; Heskett, James L. (1992). Corporate Culture and Performance. New
York: The Free Press. ISBN 978-0-02-918467-7.
 

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Congratulations for completing this Module!!

Now, give yourself two big thumbs up for your effort.

Let’s be mindful of your deadline

Activity Name of Activity Date of submission Remarks

Number

Assessment #1 Vlog Creation

Assessment #2 Entrepreneurship

*You may send a soft copy of all of your required activities to my email
gordonascmdi@gmail.com or write on a bond paper or in a yellow pad paper.

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