LESSON 5: MISCONCEPTIONS ON
ENTREPRENEURSHIP
Misconception
- a wrong belief or opinion as a result of not
understanding something
- a wrong or inaccurate idea or conception
MISCONCEPTIONS ON ENTREPRENEURSHIP
 Entrepreneurship applies only to
manufacturing businesses
 Entrepreneurship applies only to small
businesses
 Entrepreneurship applies mostly to persons
with good educational background in business
courses
 Entrepreneurship applies only to a good
economy
 Entrepreneurship is simply opening a small
business
ENTREPRENEURSHIP APPLIES ONLY TO
MANUFACTURING BUSINESSES
X: It is ONLY applicable to MANUFACTURING but
NOT to MERCHANDISING & SERVICE
 Regardless of whether the business venture is
merchandising, service, or manufacturing, the
concept of entrepreneurship is applicable
 Merchandising & Providing Services
- creativity & innovation are hardly noticeable
because there is no transformation in the
appearance and content in the product
 Manufacturing
- the product passes through the different
stages of processing from raw materials to
finished goods
- creativity & innovation take place during the
processing period
ENTREPRENEURSHIP APPLIES ONLY TO SMALL
BUSINESSES
 Entrepreneurial concepts and principles DO
NOT make any distinction as to the SIZE of the
business venture
 Entrepreneurship principles apply to small,
medium, and big businesses
 When the business venture becomes big,
expands its operations, or opens other
branches, the OWNER usually employs a
qualified MANAGER that knows Financing &
Marketing
In effect, entrepreneurship becomes
CORPORATE ENTREPRENEURSHIP
(e.g. FRANCHISING & transition of SOLE to a
CORPORATION)
ENTREPRENEURSHIP APPLIES MOSTLY TO
PERSONS WITH GOOD EDUCATIONAL
BACKGROUND IN BUSINESS COURSES
 Nobody is born an entrepreneur
 To become successful, you must know the
basic concepts and principles of it and apply
them to your chosen business
 The environment in which your business
operates also contributes to its success
 In reality, SUCCESSFUL ENTREPRENEURS come
from all walks of life and have different
education backgrounds from different colleges
and universities
 It is your INNER DRIVING FORCE that carries
you towards becoming a dynamic
entrepreneur
ENTREPRENEURSHIP APPLIES ONLY TO A
GOOD ECONOMY
 An entrepreneur finds business opportunities
in both flourishing and distressed economies
 Entrepreneurship can exist in both good and
bad economies
 Big businesses during financial crisis
CONTRACT their production while small
businesses INCREASE their output
 Even during a financial crisis, new ideas can be
created and new business opportunities can be
identified
 BAD ECONOMY does not completely serve as a
constraint to the continuation of
entrepreneurial ventures
ENTREPRENEURSHIP IS SIMPLY OPENING A
SMALL BUSINESS
 Entrepreneurship does not merely mean
opening a small business. It is simply the FIRST
STEP in actualizing the entrepreneurial
 Entrepreneurship does not start and end with
opening a small business. It is a long,
continuing process
LESSON 6: IMPORTANCE OF
ENTREPRENEURSHIP
 First, it is important to have a background
understanding of the effects of
entrepreneurship on the lives of individual
Filipinos, the local community, and the
Philippine economy.
 The benefits derived from entrepreneurship
are compounded from one level to the next
 It produces a chain of progressive results from
the individual to the community and to the
whole PH economy (DOMINO EFFECT)
IMPORTANCE OF ENTREPRENEURSHIP
 To the Filipino People
 To the Local Community
 To the Philippine Economy
 SOURCES OF ENTREPRENEURIAL IDEAS
1. Changes in the environment
2. Technological discovery and
advancement
3. Government’s thrust, programs, and
policies
4. People’s interests
5. Past experiences

IMPORTANCE TO THE FILIPINO PEOPLE CHANGES IN THE ENVIRONMENT

1. It provides guidelines in their wealth-  The term external environment refers to the
creating ventures physical, societal, and industry environment
2. It helps improve their financial and social where the business operates
life 1. PHYSICAL ENVIRONMENT
3. It helps broaden their creativity
a) Climate
4. It helps make their lives happy, fruitful, and
b) Natural resources
successful
c) Wildlife
IMPORTANCE TO THE LOCAL COMMUNITY
1. It provides employment in the community 2. SOCIETAL ENVIRONMENT
2. It creates new demand in the market a) Economic fees
3. It makes substantial contributions to the b) Sociocultural forces
raising and collection of taxes c) Political forces
4. It facilitates the movement of the factors of d) Technological environment
production
5. It creates new business opportunities 3. INDUSTRY ENVIRONMENT
6. It promotes a peaceful and loving a) Government
community
b) Competitors
7. It increases constructive competition
c) Suppliers
IMPORTANCE TO THE PHILIPPINE ECONOMY d) Customers
1. It encourages competitiveness and thereby e) Creditors
challenges entrepreneurs to keep f) Employees
improving their products and services
2. It helps find an entrepreneurial niche in the
world market
3. It helps hasten the economic recovery
process of the Philippines during financial
turmoil or crisis
4. It facilitates the smooth flow of money in
the market
5. It assists the national government in its
desire to have favorable economic ratings in
the world market As an entrepreneur, you must keenly observe and be
vigilant to the reactions of the people to the changes in
the external environment. These changes may or may not
LESSON 7: SOURCES OF ENTRERENEURIAL have an entrepreneurial implication. You must
IDEAS determine, therefore, what changes have
entrepreneurial indications. (e.g. What kind of business
venture is the best to respond to the needs of the people
during dry/wet season?)

TECHNOLOGICAL DISCOVERY AND

ADVANCEMENT
 Source of ideas: discovery & advancement in
the use of technology
 A person with entrepreneurial interest looks at
the possibility of business opportunities in any
new discovery or advancement in technology
GOVERNMENT’S THRUST, PROGRAMS, AND
POLICIES
Thrust (n) – driving force
 Sources of ideas:
- priorities
- projects
- programs
- policies

 Government
- refers to the local government (municipal,
city, or provincial) or the national government
and its branches
- changes in the policies and programs of the
government means new entrepreneurial ideas
are likely born
- their programs and agenda intuitively address
the needs of the Filipino people

PEOPLE’S INTERESTS
 Sources of ideas:
- interests
- hobbies
- preferences
e.g. internet cafes- strong attachment of young
people to computers; the rise of amusement parks,
nightspots, and nature farms- response to the
need of people for fun and relaxation.

 An entrepreneur must be keen in identifying

the cycle of interests and trends of his/her
target market since these tend to continuously
change
 He/she must be ready to address the change
properly and immediately to avoid possible
negative effects on the operation
 As an entrepreneur, your business venture
should be ADAPTIVE to the INTERESTS &
HOBBIES of the people to protect and sustain
your business

PAST EXPERIENCES
 Sources of ideas:
- past experiences
- exposures

 expertise and skills developed a person who

has worked in a particular field may lead to the
opening of a related business enterprise.

 e.g. an auditor who has learned the

appropriate auditing and management
advisory skills and techniques in a prominent
auditing firm can start his or her
entrepreneurial venture by opening his or her
own auditing office.

Thus, his/her experiences in the past can lead

to the entrepreneurial venture.
 CHAPTER 2: ENTREPRENEURIAL CHARACTER
TRAITS, SKILLS, AND SOMPETENCIES
LESSON 1: CHARACTER TRAITS TO
SUCCESSFUL ENTREPRENEURS
Character trait
- refers to the mark or attribute that distinguishes
an entrepreneur from the owner of an ordinary
small business
ACHIEVEMENT CLUSTER
- consists of entrepreneurial character traits that are
directly related to the entrepreneur’s desire to be
an achiever in the field of entrepreneurship
The entrepreneur who belongs to the achievement
cluster is:
1. An opportunity-seeker
2. Committed
3. Persistent
4. A risk-taker
5. Efficient and quality-oriented
OPPORTUNITY-SEEKER
 Seeker of business opportunities
 Must possess the ability to identify with great
ease the most appropriate entrepreneurial
opportunities
 Identifies a business opportunity and then
thoroughly evaluates its viability
 EVALUATE  to know if it is FEASIBLE
A business opportunity-seeker is an entrepreneur
who:
1. Sees and acts on new business
opportunities
2. Seizes unusual opportunities to obtain
financing, equipment, land, work, space, or
assistance
COMMITTED
 displays full commitment to the work or
endeavor that he/she is undertaking
 does not entertain negativism and skepticism
 seeks to prioritize the satisfaction and interest
of customers
 accepts full responsibility for what has been
promised
 establishes proper coordination with and
among workers so that goods and services are
delivered as promised
 COMMITMENT  INTEREST
PERSISTENT
 Trials, sacrifices, and failures challenge the
entrepreneur to be persistent
 He/she learns to take repeated/different
actions in order to overcome the obstacles
 He/she learns to take a personal sacrifices and
make efforts to complete the required task
 He/she must stick to his/her own judgment in
times of opposition and failure
 The terms QUIT & SURRENDER are not included
in their vocabulary
 PERSISTENCE  FOUNDATION OF
COMMITMENT
RISK-TAKER
 There is risk in entrepreneurship because of
uncertainty
3 TYPES OF RISK-TAKERS
1. Aggressive risk-taker
- is not scared to take any risks in business
2. Moderate risk-taker
- is more calculative in taking risks
- analyzes the situation before taking the leap
3. Conservative risk-taker
- is not very eager to take any kind of risk
- is satisfied with managing a small business
and a regular clientele
EFFICIENT AND QUALITY-ORIENTED
 A successful entrepreneur highly values
efficiency and the concept of quality in all
business undertakings
 He/she always performs the required task in
accordance with existing standards of
excellence
 He/she strives to do things better and faster
with minimal cost
 EFFICIENCY  RELATED TO THE COST
INVOLVED IN THE PRODUCTION OF GOODS &
SERVIVES
 Efficient entrepreneur produces more output
using less input  productive
 QUALITY  DEALS WITH DEFECT
PLANNING CLUSTER
- a set of characteristics of successful entrepreneurs
that basically supports the character traits in the
achievement cluster
The entrepreneur who belongs to the planning
cluster is:
1. A goal-setter
2. An information-seeker
3. Systematic in planning and monitoring
GOAL-SETTER
 Setting Goals (long-term) and Objectives (short-
term) are the basic concept of planning
 In setting the goals and objectives of the
business venture, the entrepreneur is usually
guided by the SMART principle (Specific,
Measurable, Attainable/Achievable, Realistic,
Time-bound)
 Successful entrepreneurs sail through their
journey with specific and concrete goals and
objectives
INFORMATION-SEEKER
 Seeks relevant information on target
customers, suppliers of raw materials, and
competitors
 Verifies available information from various
sources
 Seeks opinions and advice from experts in the
business field
 Finds other possible ways to make sure that the
desired information is complete and updated
SELF-CONFIDENT
 project a favorable image of themselves, which
is founded on respect and good deeds in the
business
 Entrepreneurial self-confidence is a
manifestation of the entrepreneur’s strong
trust/belief in him/herself
 Building self-confidence does not happen
overnight and not a spontaneous activity.
Instead, it is a GRADUAL PROCESS where the
past correct experiences have significant
contributions to the present

SYSTEMATIC IN PLANNING AND MONITORING

 Follows a systematic pattern of planning
processes and monitoring approaches
Systematic – implies that there is a rational
and logical approach in performing the
activities
Planning – setting of goals and objectives
Monitoring – the evaluation of the activities
and adopted courses of actions whether
they are carried in accordance with the
plans
THEY ARE INSEPARABLE

Systematic Entrepreneur
 Gathers all the qualitative and quantitative
information before formulating the plans
 Develops a logical step-by-step approach in the
formulation of plans
 Monitors the progress of activities and
switches to alternative strategies when
deemed necessary
 Evaluates constantly the alternatives in
achieving the goals

POWER CLUSTER
- set of character traits that reflect the degree of the
interpersonal relations maintained by successful
entrepreneurs in the community
- also defines how the entrepreneurs project
themselves in the business community

An entrepreneur in the power cluster is:

1. A persuasive and positive networker
2. Self-confident

PERSUASIVE AND POSITIVE NETWORKER

 Can easily influence and win over to their side
the other stakeholders in business
(e.g. customers, suppliers, and prospective
creditors)
 Able to establish good and positive networking
with almost all of the players in the business
community
 Good communicators
 Adopts specific strategies that will influence
others while maintaining respect
 Makes use of positive contacts in the business
community in order to meet the goals and
objectives of the business endeavor