Core Concepts of Entrepreneurship

Learning Objectives
✓Enumerate the salient features of entrepreneurship
✓Explain each feature.
 Providing values
to customer
Opening and
Wealth-creating managing self-
venture owned business

Entrepreneurship

Art of correct Risk-taking

practices venture
1. Entrepreneurship as an ART OF CORRECT
PRACTICES
✓It is not governed by fixed and absolute rules
✓It continuously grows, develops, improves and expands; the changes
does not stop.
✓Creativity and innovation is the soul of entrepreneurship
2. Entrepreneurship is a WEALTH-CREATING
VENTURE
Wealth is defined as the abundance of money, property or possession
(Random House Webster Dictionary)
✓Is an entrepreneurial undertaking wherein wealth is created. It is a
business endeavor where the resources of the enterprise have been
utilize fully to maximize the investment of the entrepreneur
✓Improve the life of the entrepreneurs
3. Entrepreneurship is PROVIDING VALUE TO THE
CUSTOMERS
✓Value basically the opposite of waste. Product and services are
consider valuable when they provide additional benefits to the
buyers and users.
✓Value shall always be defined from the perspective of the buyers and
not from the seller
4. Entrepreneurship entails OPENING AND
MANAGING THE SELF-OWNED ENTERPRISE
✓Entrepreneur open his/her business under the principle of
entrepreneurship. It must be self-owned in order to quantify as an
entrepreneurial endeavor.
5. Entrepreneurship is a RISK-TAKING VENTURE
✓“Risk is inherent in an entrepreneurial venture”
✓In other words, once an entrepreneurial venture in born because of
new ideas or opportunities, risk comes simultaneously with the
venture
 Entrepreneur
❑Keep on searching for something new/ Find ways
to transform new ideas into entrepreneurial
opportunities/ Transforms feasible new ideas into
entrepreneurial venture/ Perform entrepreneurial
activities correctly regardless of whether they are
undertaken easily or not.​
❑Looks at his/her own business as a wealth-
creating venture.
❑​Only sells valuable goods and services that highly
satisfies their customers/ Defines value from the
perspective of the buyers.
❑Opens & manage his/her own business - clearly
sets the goals of his/her business.
❑Face business risks intelligently & find ways to
minimize the effects of the risk.
Businessperson
▪ Only builds upon existing ideas to gain immediate
earnings from his/her business/ ​Manage and
operate his/her business according to what
pleases him/her/ prefers business activities which
are done easily.
▪ ​Opens a business with the working philosophy
that it will provide an income/ regards his/her
small business basically as a source of income.
▪ Sells goods or services for a price that may not be
valuable to anyone/ Defines value from their own
perspective.​​
▪ Opens his/her own business but hires someone
else to manage it.
▪ Does not understand the nature of business risk/
Avoids risk and only favors operating under
favorable condition.