Course Title

1
The Foundations of Entrepreneurship

Module 001 – The Foundations of

Entrepreneurship

At the end of this module you are expected to:

1. Understand the Foundations of Entrepreneurship
2. Determine the characteristics of Entrepreneurship
3. Know the benefits and drawbacks of Entrepreneurship

Introduction
What is an Entrepreneur?
A person who start and operates a business taking on financial risk to do so.
An entrepreneur is one who organizes a new business in the hopes of making a profit.
A person who organizes and manages any business, usually with considerable initiative and
risk.
Entrepreneur is a person who starts an enterprise.

The process of creation is called entrepreneurship or turning ideas into marketable products

Definition for engineering students.

So entrepreneur is a person who start and operates a business by using engineering skills with
business management/ entrepreneurial skills.
Engineer Entrepreneurship a technical professional /engineering skills entrepreneurial/ business
management skills
He must be able to integrate Business management skills with with engineering/technical skills

Entrepreneurial/ business management skills

New or revised product/ service idea
Managing business portfolio
Financial Plan
Marketing plan
Advertising, sales,
Distribution channels management
Leadership skills
Organizing and Managing People.
Employees compensation and reward system
Risk Management
Quality management …………………………..

Course Module
 Course Title
2
The Foundations of Entrepreneurship

. Entrepreneur and Entrepreneurship Entrepreneur Entrepreneurship Organizer Organization

Decision maker Decision Making Innovator Innovation Motivator Motivation Creator Creation
Leader Leadership Manager Management Planner Planning Communicator Communication
Administrator Administration

. Why Study Entrepreneurship?

Scientists and engineers who want to lead companies need to know how to back up ideas with
business management/ entrepreneurial skills. You will learn the complex business
processes involved in commercialization. You learn how to make trade-offs among features,
benefits, price, markets, and business operations You learn how to adapt to uncertainty
and change You learn techniques for managing people

Characteristics of Entrepreneurs
Desire for responsibility
Willingness to accept risk,
Confidence in their ability to succeed
High level of energy
Future orientation
Skilled at organizing
Flexibility

Expectations from an Entrepreneur

An entrepreneur should
be willing and able to convert a new idea or invention into a success innovation,
be able to develop new markets of customers and buyers,
discover new sources of materials,
mobilize capital resources (land, machines, buildings, money, humans),
introduce new technologies, products and services.

. Distinction Between An Entrepreneur And A Manager - An entrepreneur start a business where a

manager provides his services…….. - An entrepreneur is the owner of the organization and he
bears all the risk and uncertainties… - Entrepreneur’s objective is to establish, innovate and
expand a business, where a manager implements the entrepreneur’s plans and ideas……… -An
entrepreneur is faced with more income uncertainties as his income is contingent on the
performance of the firm…….. - An entrepreneur deals with faults and failures as a part of learning
experience where as a manager make every effort to avoid mistakes……..

. Rewards of Being an Entrepreneur

Rewards of Being an Entrepreneur
High degree of independence—
freedom from constraints
Get to use a variety of skills and talents
Freedom to make decisions
Accountable to only yourself
Opportunity to tackle challenges
Course Module
 Course Title
3
The Foundations of Entrepreneurship

Feeling of achievement and pride

Potential for greater financial rewards

. The cultural diversity of Entrepreneurship

Young entrepreneurs
Women entrepreneurs
Minority-owned enterprises
Immigrant entrepreneurs
Part-time entrepreneurs
Home-based businesses
Family businesses

. Nine Deadly Mistakes of Entrepreneurship

1. Management incompetence
2. Lack of experience
3. Poor financial control
4. Failure to develop a strategic plan
5. Uncontrolled growth
6. Poor location
7. Improper inventory control
8. Incorrect pricing
9. Inability to make the “entrepreneurial transition”

. Benefits of Small Business Ownership

The opportunity to:
create your own destiny
make a difference
reach your full potential
reap unlimited profits
contribute to society and be recognized for your efforts
do what you enjoy and have fun at it

. Drawbacks of Small Business Ownership

Uncertainty of income
Risk of losing your entire investment
Long hours and hard work
Lower quality of life until the business gets established
High levels of stress
Complete responsibility
Discouragement

References and Supplementary Materials

Books and Journals

Course Module
 Course Title
4
The Foundations of Entrepreneurship

1. Basics of Technoprenuership: Frederico Gonzales, President-PESO Inc; M. Barcelon, UPATBI

2. Mankani, D. (2003) Technopreneurship : The Successful Entrepreneur in the New Economy.
Prentice Hall.
Online Supplementary Reading Materials
1. https://www.slideshare.net/afzaalali14/chapter-1-entrepreneurship-lecture-1-2
2. https://www.slideshare.net/badmasanjan/chapter-1-the-foundations-of-entreprene
urship
3. http://digitalsolutions.ph/couchkamotereviews/technopreneurship
Online Instructional Videos
1. https://www.youtube.com/watch?v=bpCLY3xS_sg
2. https://www.youtube.com/watch?v=YHBVjv4MYXE&list=PL8dPuuaLjXtNamNKW5ql
S-nKgA0on7Qze
3. https://www.youtube.com/watch?v=aozlwC3XwfY

Course Module