Module 0. Entrepreneurship

Subject: Entrepreneurship
Governor Pack Road, Baguio City, Philippines 2600

Tel. Nos.: (+6374) 442-3316, 442-8220; 444-2786;
442-2564; 442-8219; 442-8256; Fax No.: 442-6268 Grade Level/Section: HE 12 A and B
Email: email@uc-bcf.edu.ph; Website: www.uc-bcf.edu.ph
MODULE 0: Introduction to
Subject Teacher: Frejobel E. Langpaoen
Entrepreneurship
Course Description: This course deals with the concepts, underlying principles, processes, and implementation of a
business plan. The preliminaries of this course include the following: 1) discussion on the relevance of the course; 2)
explanation of key concepts of common competencies; 3) explanation of core competencies relative to the course; and 4)
exploration of career opportunities.
Learning Outcomes:
 Demonstrate understanding of key concepts, underlying principles, and core competencies in entrepreneurship.
 Demonstrate understanding of concepts, underlying principles, and processes of developing a business plan.
 Demonstrate understanding of the environment and market in one’s locality or town.
 Demonstrate understanding of operating a simple business.
At the end of this quarter, I can:

1. Discuss the relevance of entrepreneurship in general, including its economic importance.
2. Define who is entrepreneur.
3. Explain the key concepts of common and core competencies in entrepreneurship.
4. Delineate clearly between entrepreneurship and employment.
5. Explore opportunities for entrepreneurship as a career.
Information Sheet LO 0.1.

Overview of Entrepreneurship
CONTENT
This module will teach you the basics of entrepreneurship beginning with what role it plays in society and
the economy. You will also know key concepts of common and core competencies which are required skills to become a
successful entrepreneur. You will be able to understand the pros and cons of being an entrepreneur as compared to being
an employee. A total persona of an entrepreneur will be inculcated to you, including the characteristics, behaviors,
activities, values, and mindset. You will also be exposed to the various exciting career opportunities in line with being an
entrepreneur.
What is Entrepreneurship?
Enterepreneurship is a proactive process of developing a business venture to make a profit. It involves 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. With this definition, being an entrepreneur may seem difficullt, but it
can be rewarding if the enterprise flourishes. Creating a sound business plan, along with efficient and efective operation of
the business, will not only benefit the entrepreneur but also the entire society and the economy.
An entrepneur is successful if the business that he or she envisioned has materialized into a thriving industry with regular
customers and financial gain. He or she either decides to maintain his or her business or expand. This eventually reflects
on the society and the economy as a whole. Here are the societal and economic benefits of entrepreneurship.
1. Enterepreneurship produces more jobs that equate to an increase in national income. Millions of unemployed
people will have the opportunities to have a decent occuptaion. Small businesses produce jobs and create wealth.
2. Enterpreneurship amplifies economic activities of different sectors of society. A simple eatery in a rural area
and a coffee shop in an urban area both ignite economic activity regardless of their business scale.
3. Entrepreneurship introduces new and innovative products and services. New products and services are always
available in the market because of the ingenuity of entreprenerus to seek opportunities and improve them.
4. Enterepreneruship improves people’s living standards. How can you look good if not for the services of the
salon, spa, or barber shop? How can your day be complete without the food cooks by the nearby restaurant? How
can you live without the stores where you buy basic needs?
1 Entrepreneurship
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Entrepreneurship
5. Entrepreneurship disperses the economic power and creates equality. It balances the economy by distributing
national income to more businesses rather than to only few monopolies.
6. Enterepreneurship controls the local wealth and balances regional development. It makes sure local resources
are used properly and that every area has an appropriate allocation od resources.
7. Entrepreneurship reduces social conflicts and political unrest. Imagine if there are no or only few sari-sari or
supermarket stores in your area. All of you will then fight for the food supplies because the store cannot supply all
your needs.
8. Entrepreneurship elicits economic independence and capital formation. A country with more entrepreneurs is
highly likely to become financially independent and will less likely need the help of other countries. This applies
to families, barangays, and cities. Entrepreneurship creates wealth instead of borrowing wealth.
INFORMATION SHEET 0.2

Who is Entrepreneur?
CONTENT
The word “entrepreneur” has a French origin and was coined from the 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.
An entrepreneur will only expect returns once he or she already added or created value out of an opportunity. An
entrepreneur’s natural talent of being perceptive for opportunities in his or her surroundings that normal people do not
give importance to or often neglect. He or she sees existing problems about a certain product or service as prospects rather
than threats. Leadership is the core of every entrepreneur. He or she is always excited about his or her business and
bravely takes risks. He or she innovates, executes his or her big ideas, and rarely procrastinates.
The definition of an entrepreneur only provides you with a general description or shows you what is expected from an
entrepreneur. However, entrepreneurship is composed of varying degrees or levels of intensity.
There are five levels of entrepreneurial development according to Action Coach.
1. The SELF-EMPLOYED. Self-employed persons are, simply put, not comfortable with the routines of a desk
job. They do not want to conform to a fixed working schedule. They want to do things in their own way and start
to feel agitated when controlled by the powers-that-be. While they can self-sufficient, their tendency is to become
too reliant on themselves, which leads to exhaustion. They will eventually realize that a successful business
should work for them, not the other way around. If they realize this, they can move on to the next level.
2. The MANAGER. In this level, entrepreneurs feel the need to step up and ask some help from the people around
them. They delegate and hire potential employees to do the work. However, they may have the tendency to get
more people who do not know the exact needs and requirements of the job, because entrepreneurs think that the
battle is in the scale and not the profitability. As a result, entrepreneurs may get frustrated because the business
does not go as planned, and some potential problems arise from how employees operate. When they begin to
realize this, entrepreneurs will start knowing their employees better, assessing their strengths and their areas for
improvement. They will begin to create positions that match the requirements of the business and the employees’
expertise. Entrepreneurs can now move on to the next level.
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3. The LEADER. Entrepreneurs in this level already seeing their people flourish, stepping up and producing great
results with minimal supervision. Unlike before where they are in charge of virtually everything, they can now
sleep peacefully at night and have more freedom and time for themselves. They already recognized key leaders in
their organization. In effect, these key leaders also enjoy the entrepreneurs’ trust and are satisfied with the
outcome of their careers. Entrepreneurs at this stage now focus on the big picture and strategic direction of their
business rather than in generating sales and operating the business. At this point, entrepreneurs can now move on
to the next level.
4. The INVESTOR. Investors look for more opportunities for their business to grow. They may either purchase one
or two businesses that can potentially add value to the company or sell their established business (as a franchise)
to potential entrepreneurs. They will delegate a suitable manager for such operations and will act as directors.
When this becomes successful, they will now become true entrepreneurs.
5. The TRUE ENTREPRENEUR. True entrepreneurs, based on their experience, now aim for quality and
excellence in their work. They have fully learned, and continue to practice, a four-step process of thinking -
starting with idealization, visualization, verbalization, and materialization.
In idealization, entrepreneurs dream enormously and desire to build an ideal environment. In visualization,
entrepreneurs start to create plans to make the dream reality. Verbalization involves sharing their ideas with other
people, knowing that their vision is already occurring. Materialization happens when the vision becomes a reality.
In this stage, true entrepreneurs now have an income that keeps on multiplying even if they do not put much
effort.
The world of entrepreneurship these days has already evolved, and new terms are coined to suit entrepreneur’s field
or expertise. Here are some of them.
1. A technopreneur is an entrepreneur who puts technology at the core of his or her business model.
2. A 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 profit.
3. An intrapreneur is an entrepreneur in a large company or corporation who is tasked to think, establish, and run a
new big idea or project. Intrapreneurs are usually the product managers or the business development managers of
a company.
4. An 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
CONTENT
Entrepreneurship is a career that requires a plethora of common and core competencies. Therefore, to be considered a
successful entrepreneur, he or she must possess common entrepreneurial competencies that are needed all throughout the
entrepreneurship career. At the same time, he or she should also possess core competencies that are needed for business
sustainability and management.
Here are the COMMON TRAITS that entrepreneurs should always have.
1. PROACTIVE. Entrepreneurs are reactive rather than passive. They address issues, problems, and challenges
before they come rather than when they already happened. 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. Entrepreneurs are innovation champions. They see opportunities in hopeless and
complex situations. They are always enthused to improve and develop new products and services and introduce
them to the market. They don’t settle for mediocrity and the status quo.
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3. RISK TAKERS. Entrepreneurs will not be successful if they do not take risks. By taking risks, entrepreneurs do
not just grab opportunities left and right; they have to take into consideration the potential various threats they
may encounter. Entrepreneurs calculate risks; if they think that there is a big chance of succeeding, they push
through with the venture and don’t let the opportunity pass.
4. HAVE A SHARP EYE FOR OPPORTUNITIES. Entrepreneurs have a talent for recognizing an opportunity even
by using the macrolevel data only. 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 retention, which can be achieved by sociable entrepreneur.
6. NETWORKERS. A network knows the key people to connect with. Networking can be a very intimidating task,
for it takes a lot of guts to pull it off. Successful entrepreneurs gain trust of their valuable network and maintain a
long-lasting relationship with them.
7. DECISIVE. Entrepreneurs always have a decision about their business. They do not settle for gray areas or
unclear solutions. They do not leave an issue unsolved without a disposition. They make sure that all aspects of
their business have clear objectives and strategies. Last, they base their decisions on scientific calculations backed
up by their experience and technical knowledge.
8. BALANCED. The minds of entrepreneurs should have a balanced between the analytical and the creative side.
Their brains are always playing with “unique ideas” that no one has ever thought of yet. Entrepreneurs always
have “Eureka!” moments and enjoy them.
9. INNOVATIVE. The minds of entrepreneurs are rich with big ideas that can add value to their existing business or
could become a game changer in the industry or business where they belong. They do not stop improving and
thinking of new and worthwhile ideas for their business.
Here are the CORE TRAITS that entrepreneurs should develop in managing and running the business.
1. LEADERS. Successful entrepreneurs always have the heart of a leader. To be successful leaders, they must be a
source of inspiration for their employees. They must be very humble, approachable, friendly, and 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 their
decisions. They know how to unite the team and bring out the best in every employee.
2. COMMUNICATORS. Entrepreneurs know how to use all forms of communication to effectively share ideas and
address certain concerns with their customers or employees. Effective communication not only provides people
with a clear view of what the business offers, they also help prevent mishaps in an organization. Communication
channels between entrepreneurs and their employees or customers should always be opened to ensure the smooth
flow of operations in their business.
3. SPECIALISTS. Entrepreneurs are experts in their chosen business. They are tactical and are very keen with
details. When asked about the specifics of their product or service, they can easily answer without heavily relying
on their people. They understand the totality and specificity of their business. As a result, they can easily think of
innovating and improving the product or service offerings because they know their intricacies. They enjoy being
in action instead of being behind the scenes.
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 business, be it finance, operations,
or marketing. They listen to the plight of their employees on certain problems involving their units and come up
with strategic solutions. Entrepreneurs can solve problems by immersing themselves in day-to-day activities,
knowing what is happening in and out of their business. Entrepreneurs should also be aware of their employees’
personalities; they must know how and when to use them to help solve problems. Entrepreneurs 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.
4 Entrepreneurship
Tel. Nos.: (+6374) 442-3316, 442-8220; 444-2786;
Entrepreneurship

Entrepreneurship or Employment?
CONTENT
Entrepreneurship and employment are two different career paths that a person can choose depending on his or her
personal aspirations and work characteristics. It is up to the person at the end of the day on what career trail he or she
will follow, considering all compelling career factors that are important to him or her. The following table shows a comprehensive list
of the perks and the downsides of being an entrepreneur as compared to being employed.
PROS AND CONS OF ENTREPRENEURSHIP VS. EMPLOYMENT
Important Career Factors Entrepreneur Employee

1. Income  Income generated passively even  Income generated actively (i.e.,
when the entrepreneur is resting on working hours only); no work
 Opportunity income unlimited, = no pay
depending on the success of the  Income usually fixed per month
business and increases every year
 Income only earned when the depending on the employer and
business is successful the employee’s performance
 Income earned whether the
business is successful or
unsuccessful
2. Hiring and Firing, Organizational  Provides jobs; is the owner of the  Seeks for a job; is the one
Setup, and Major Key Result business and conducts the talent applying for a job and is
Areas selection interviewed by the company’s
 Fully responsible for serving hiring officers
customers, making the business  Has the goal of satisfying only the
profitable/sustainable, and employer or the direct supervisor
providing employee satisfaction  Fully dependent on the
 Has the power to disengage employer’s performance; is at risk
nonperforming employees of losing his or her job if the
applying the due process policy company does not perform well;
of disengaging personnel may find it difficult to just leave
 Can venture into expansion of their below par employer if this is
business such as franchising and their only source of income
buying other similar businesses  Can only work for the current
employer exclusively
3. Daily Tasks  Performs all necessary variable  Has routine tasks and works on
tasks to establish and manage a regular or normal hours
startup business, which usually  Follows policies, procedures, and
takes most of the entrepreneur’s memoranda from the employer
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 Vacations  Has a flexible schedule and can  Has a limited number of vacation
take unlimited number of days imposed by the employer
vacation days (applicable only if
the business has stabilized
already)
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5. Taxation  Taxed on the net income; can  Taxed on the gross income;
claim taxable income deductions cannot use expenses incurred
for allowable expenses incurred related to the job such as food and
by the business transportation expenses to claim
for deductions from taxable
income
6. Comfort Level at Work  Is comfortable in doing multiple  May be comfortable with routines
and challenging tasks and takes and minimal risks; may also be
accountability with the risks and comfortable in working for the
profits of the business; does not company itself
want to be confined in a box;
thinks outside the box or
sometimes thinks there is no box.

Careers Entrepreneurship
CONTENT
Entrepreneurship consists of vast career options depending on the passion and field of interest of the
entrepreneur. The saying “When you love what you do, it’s as if you are not working” is very much
applicable to entrepreneurs who consider managing their business as enjoyment rather than working exhaustively.
Here is a list of the most common small businesses in the Philippines.
1. SARI-SARI STORE. There are approximately more than one million sari-sari stores in the Philippines. Situated
in almost all neighborhoods, these convenience stores provide affordable basic retail products to nearby
communities. A sari-sari store is one of the easiest businesses to set up due to the minimal capital required and
because it can be managed at home, where the business owner lives.
2. RICE RETAILING. Because rice is the staple food of Filipinos and other Asian countries, rice retailing business
is very common in the country.
3. FOOD CART BUSINESS. This business is also very popular in the Philippines. The number of food cart
businesses is not as the number of sari-sari stores, but food carts are present in almost every populous location.
They are usually located inside or outside the malls, schools, parks, train stations, and offices. Popular food items
sold in food carts are dumplings (siomai), boiled fertilized duck eggs and quail eggs deep fried in batter
(tokneneng and kwek-kwek), fish balls and squid balls, burgers, fried noodles, shawarma, hotdogs, sandwiches,
pizza, donuts, and pastries. Popular beverages sold by food carts are sago’t gulaman (tapioca pearls and jelly),
soft drinks, mineral water, milk tea, coconut juice, and other juices. Food cart businesses are usually under
franchising arrangements.
4. PRINTING BUSINESS. This business is also lucrative in the Philippines because the demand is high. Usually
situated near schools and offices, printing businesses cater to the needs of their projects and to offices for their
advertising and business requirements (flyers, billboards, magazines, newspapers, journals, and calendars).
Printing businesses also cater to the printing demands of occasions such as weddings, anniversaries, birthdays,
funerals, and graduations.
5. BUY-AND-SELL BUSINESS. This business is one of the emerging businesses in the Philippines, and it is not
just done traditionally in brick-and-mortar stores but also over the Internet. The influx of buy-and-sell Web Sites
has changed the behavior of how Filipinos exchange goods in the most efficient and practical way. Everyone can
technically be a seller even without an actual business.
6 Entrepreneurship
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Entrepreneurship
6. STREET FOOD BUSINESS. Just like the food cart business, this business is widespread in the Philippines.
Street food business are literally located in streets, selling almost the same food products being sold by the food
cart business. Majority of the street food business owners are selling grilled food items such as barbecue. Some
unusually popular street foods are isaw (chicken intestines), betamax (chicken blood), and adidas (chicken feet).
The famous balut (developing duck embryo) is also sold in the streets. These street food businesses have been
successful and are timeless.
7. FLEA MARKET BUSINESS OR TIANGGE. In this type of business, entrepreneurs set up a small space and
sell any type of goods in a palengke setup that is normally in an open space. Customers are more interested to buy
from flea market because they can bargain for the price. Products being sold range from clothes, to food items, to
souvenirs, and to household effects.
8. ONLINE SELLING BUSINESS. This business deals with adding the Internet as a marketing and transaction
channel for selling. This is very similar with the BUY-AND-SELL business, except that the focus is on selling
existing and established products online. The Internet has revolutionized the way Filipinos transact business.
9. CELLPHONE LOADING BUSINESS. More than 95% of Filipinos are prepaid mobile phone users, according
to an article published by the Philippine Daily Inquirer (2012). Moreover, 80% of Filipino households have access
to mobile phones. This is the reason why there are so many cellphone loading stations in the country. Some
entrepreneurs link the cellphone loading business to existing businesses such as the sari-sari stores, food cart, or
online business.
10. LAUNDRY AND DRY CLEANING BUSINESS. This type of business is often located at central business
districts and areas with several condominiums and townhouses. Furthermore, these business establishments also
have significant presence near schools, dormitories, and apartments. On thing common about the residents of
these places is that they do not have enough time to wash and dry their clothes and just give the job to the laundry
and dry-cleaning business. The business owner should follow hygiene requirements before starting this business.
11. HAIR STYLING AND MAKEUP BUSINESS. One of the successful businesses in the Philippines is the
hairstyling business, which includes parlors and barber shops. Aside from the core service of giving haircuts, this
business also offers auxiliary services such as hair treatments (perm, straightening, highlighting), massage, and
nail styling. Filipinos are generally conscious about proper grooming and hygiene, so that’s why this business is
profitable.
12. SPA, GYM, AND NAIL CARE BUSINESS. Related to the hair styling and makeup business is the spa, gym,
and nail business. One of the ways Filipinos cope with stress is by going to a spa. This business offers a range of
massage treatments that can relax the stressed areas of the body, as well as other treatments such as facials and
body scrubs. Filipinos now also go the gym because more Filipinos are becoming health conscious. Nail care is
very much enjoyed by Filipino women who avail of a manicure, a pedicure, or both. Filipino men are also
focusing into their overall appearance these days.
13. VIDEO AND PHOTOGRAPHY BUSINESS. This business requires talent in capturing precious moments of
celebrators in weddings, birthdays, anniversaries, graduations, and other important events. This business is
gaining popularity because of the presence of social media, where videos and photographs are supposed to be
shared to other people.
14. TUTORIAL BUSINESS. This business caters to students who are not able to catch up with their lessons, or
those who just want to be ahead in class. A tutorial business is composed of experts in a particular field who
transfer their knowledge to another for a fee. In the Philippines, the tutorial business has become an important aid
in reinforcing and enriching the students’ basic education knowledge.
15. BAKING BUSINESS. A lot of bakeries are present in almost all neighborhoods in the Philippines because bread
is the second staple food of Filipinos. Pan de sal is the most common bread being offered by the business.
16. WEB SITE DEVELOPMENT AND DESIGN/BLOGGING. The popularity of the Internet brought so many
opportunities to Internet- savvy budding entrepreneurs. In this business, the Web site developer conceptualizes
and implements a Web site for another business whose objective is to inform, persuade, and remind its customers.
Blogging, although initially made as a site to write your personal thoughts, has become a source of income by
7 Entrepreneurship
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most online writers, depending on the writer’s agenda. A blog may become famous or successful if the site has a
number of followers or readers. Some people may earn cash by allowing companies to place ads on their blog.
17. DIRECT SELLING BUSINESS. This business is also very common in the Philippines. It is a face-to-face
selling of products by a sales agent. The products include fashion accessories, health and wellness items, clothing,
food supplements, and homecare items.
18. CAR WASH AND CAR CARE BUSINESS. You often see this business in large cities because of the
proliferation of cars. In fact, the demand for car care increases every year.
19. BAR, CAFÉ, AND RESTAURANT. The number of foodies (food enthusiasts) has increased because the
Filipino palate became globalized. Filipino consumers’ demand for variety and quality taste has evolved as well’
thus, these businesses are continuously thriving.
20. WATER STATION AND LPG (Liquified Petroleum Gas) STATION. These businesses can never go wrong
as they continuously serve households, supplying them with their purified water and gas needs. The products that
they sell are used for daily consumption, which is why a lot of these are found in almost every corner in the
Philippines, especially in the urban areas.
No successful business started huge right away. A business starts with an idea. Once the business is established, the
business owner, the entrepreneur, can choose to expand and explore franchising, entrepreneurship (managing a startup
business in an established business), and acquisition (buying another similar business or a new business). 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.
REFERENCES:
DIWA Senior High School. Entrepreneurship 2016. DIWA Learning Systems Inc.
REX BOOKSTORE. Entrepreneurship 2016.
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Module 0. Entrepreneurship

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Subject: Entrepreneurship

Governor Pack Road, Baguio City, Philippines 2600

At the end of this quarter, I can:

Information Sheet LO 0.1.

INFORMATION SHEET 0.2

There are five levels of entrepreneurial development according to Action Coach.

INFORMATION SHEET 0.4

PROS AND CONS OF ENTREPRENEURSHIP VS. EMPLOYMENT

Important Career Factors Entrepreneur Employee

INFORMATION SHEET 0.5

Here is a list of the most common small businesses in the Philippines.

REX BOOKSTORE. Entrepreneurship 2016.

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