FUNDAMENTALS OF ENTREPRENEURSHIP
of servicing various cellular owners who
Module 1. The Concept of Entrepreneurship
Topic Outline
 Introduction
 The Entrepreneur
 Factors that Develop Entrepreneurial
Activities
 The Making of a Filipino Entrepreneur
 The Challenges for Entrepreneurship
 The Starting Point to Entrepreneurial Success
 Entrepreneurial Management Demands
 Profile of a Successful Entrepreneur
Objectives
 Described the key concepts in making of an
entrepreneur;
 Discuss the factors to develop
entrepreneurial activities and successes; and
 Discuss the development and challenges of
entrepreneurship.
INTRODUCTION
The Philippines is a haven for the
development of young entrepreneurs. As a
developing country, its resources are varied and
numerous. We need only to focus on areas where
business opportunities are open to small and
medium enterprises. In the age of globalization,
small and medium enterprises should come in and
explore the wide area of business opportunities.
Small and medium enterprises are the key to
economic development as they employ more people
and use the resources of people’s talent and
ingenuity. Family enterprises often start with an idea
and strive to give forms to that idea. Generation of
ideas comes at the time of crisis and people begin
to find new ways of making living.
THE ENTREPRENEUR
An entrepreneur is an individual who is alert
to profitable opportunities for the exchange of goods
or services. Examples of opportunities are:
 During the opening of the school, a street
vendor takes the opportunity to make profit by
selling school supplies.
 During Christmas and other occasions, he or
she takes the opportunity of selling Christmas
items and selling clothing apparels at different
seasons.
 A cell-phone repair ma takes the opportunity
cannot afford to buy new models.
Entrepreneur is an individual who creates a
new business, bearing most of the risks and
enjoying most of the rewards. He/she organizes,
manages, directs and assumes the risks of a
business or enterprise. The entrepreneur is
commonly seen as an innovator, a source of new
ideas, goods, services, and business/or procedures.
Being an entrepreneur is a lifestyle or an attitude. It
is not a calling for everyone, but rather a choice.
Entrepreneurship defined as the process of
creating something new with value by devoting the
necessary time and effort, assuming the
accompanying financial, psychic, and social risks
and receiving the resulting rewards of monetary and
personal satisfaction and independence.
According to Fajardo (2009),
entrepreneurship is the capacity for innovation,
investment and expansion new market, products
and techniques. This definition implies that an
enterprise is at work whenever an individual takes
the risks and invests resources to make something
unique or something new, designs a new way of
making that already exists, or creates new markets.
From the definition of entrepreneurship, there
are three characteristics of entrepreneurial activity.
They are:
1. Innovation – entrepreneurship generally means
offering a new product, applying a new
technique or technology, opening a new
market, or developing a new form of
organization for the purpose of producing or
enhancing a product.
2. Running a business – the foundations of
business combines resources to produce
goods or services. Entrepreneurship means
setting up a business to make a profit.
3. Risk taking – the term risk means that the
outcome of the entrepreneurial venture can’t be
known. Entrepreneurs, therefore, are always
working under a certain degree of uncertainty,
and they can’t know the outcomes of many of
the decisions that they have to make.
Consequently, many of the steps they take are
motivated mainly by their confidence in the
 innovation and in their understanding of the
business environment in which they are
operating.
ENTREPRENEURIAL SKILLS AND
COMPETENCIES
The entrepreneurial skills and competency
factors are the following: negotiating, planning, risk
assessment, purchasing, accounting, recruitment,
training, selling, controlling and dealing with
emergencies.
1. The entrepreneur as a missionary
The entrepreneur is a missionary who
perceives opportunities inherent in the exchange
of goods with great desire for profit. The
entrepreneur creates an environment in which
success is possible and the possibility of failure
is controllable. The entrepreneur is at work
whenever he takes risk and invests his personal
talents and resources to make something new or
different as customers like to buy new and
improve products.
2. The entrepreneur as an extraordinary
businessman
The entrepreneur has knowledge which
ordinary people do have. This additional
knowledge leads the entrepreneur to exploit the
opportunities to make profit. The information is
costless as opportunity arises at any given time
and those with entrepreneurial acumen takes the
lead before any individual takes their place. He
uses his inherent talent for innovating distribution
of goods or making new service to satisfy his
customers.
3. The entrepreneur is goal driven
The entrepreneur is goal driven and self-
confident as he exercises the locus of control.
He sets high goals and strives to attain the
projected target and accomplishments. He
extracts compliance with set goals and activities
to avoid the risk he foresees while planning the
activities and programs in the operation of the
enterprise. He accepts challenges and
responsibility for results. He makes sure that
people work based on specified work programs
and schedules.
4. The entrepreneur is marketing man
The marketing environment is identified by
the entrepreneur and thus he marshals his
resources to pursue the opportunities and makes
immediate action to exploit his personal gain.
The needs and wants of customers are properly
identified and these are the propelling reason for
him to take the opportunity to make profit. He
takes the lead for innovation and makes
modifications to make the customer aware that
his product or service is more superior than
those offered by others.
5. The entrepreneur starts small to become big
Many entrepreneurs start small but with
their managerial talents and persistence, they
exploit the opportunities available for their
disposal. At the early stage, their growth
orientation is for expansion of their operation and
they persistently pursue approaches that
differentiate them from other managers. It is the
entrepreneur source of power and authority in
managerial position and a negative possibility
has no place in his management style as he
turns them into possibilities that make him
entirely different from other managers in the
organization. Entrepreneurs are generally
extrovert, aggressive and would like to work, and
value he possesses. He perceives risk as
opportunity and makes innovations or
modifications as he exploits the resources
available to make things happen.
THE MAKING OF AN ENTREPRENEUR
The making of an entrepreneur is a
dynamic process an approach. As an approach, the
entrepreneur considers the business opportunity as
a chance to find new ways to solve the problem
rather solving the problem. A manager of an
organization is characterized as an adapter while
the character of an entrepreneur is an innovator.
The manager employs discipline and precise
methodical approach in solving business problems
while an innovator entrepreneur approaches the
problem on different angle as he focuses on
discovering problems and make new avenues for its
solutions. Entrepreneurship is a process that can
be developed, learned and nurtured.
ENTREPRENEURSHIP AS A DYNAMIC
PROCESS
Entrepreneurship is a dynamic process of
innovation and the establishment of new opportunity
for the creation of new venture. The small business
owner entrepreneur in the sense is self-employed
and is different from an innovator entrepreneur. The involved. Locus of cost control must be in his
real entrepreneur is an individual with the greatest hands.
drive for expansion and growth and has propensity 5. The Development of SWOT Analysis
to make a difference in terms of their achievements The avoidance of risk can be taken with
in profit and exploitation of the resources for growth careful analysis of the Strength, Weaknesses,
and business expansion. opportunities ang Threats of the organization.
The entrepreneur develops strategic plans The entrepreneur must see the environment of
and programs that will ascertain a definite the enterprise based on SWOT analysis so that
advantage over the others in their line of business. the risk involve could be seen before it happens.
This is the reason why we see people in the same Forecasting environmental events are antidote to
line of business that others had gone miles over the future business risk.
others. The former is a manager of this business
while the latter is an entrepreneur.
ENTREPRENEUR VS. MANAGER (character
FACTORS THAT DEVELOP ENTREPRENEURIAL approach in solving problems.
ACTIVITIES
Entrepreneur Manager
1. The Entrepreneur take the Initiative
With his great interest to capitalize on the Looks at the problem on Develops system and
opportunity at hand, the entrepreneur takes the different angels and procedure that are
initiative of venturing into business. With an finds means to précised based on
circumvent the same. current practices in the
amount of knowledge, he knows that he can
industry.
operate the venture with minimum risk. Armed
with vigour and vitality he plunges a profitable Discovers the roots of Interested in solving the
operation. the problem and organizational problems
2. Organizational of Capital Resources develops avenues to rather than finding other
While talents and ambition are great better solve the problem. avenues in the solution
resources of the entrepreneur, financial and Formulate solutions and of the problems.
human resources are important ingredients in alternatives.
the start of the organization. With his savings Develop basic Interested in the
and other financial resources, he starts operation assumptions and refinement of policies
on small scale together with his trusted family hypothesis related to and procedures and
members or friends he knew that could help him current practices and tends to revise them to
develop his dream enterprise. makes innovations solve existing problems.
3. The Development of Administrative Machinery based on careful
The management is developed with analysis through SWOT.
organizational structure based on the need of
operation. Specific duties and responsibilities are Interested in the end He finds the means to
assigned to individuals with talents and skills that results rather than the solve problem and
fit their respective position. It is based on the means to achieve it. He compliance to routine
individual capacity to do the job and not on has little tolerance for activities.
personal connection with the entrepreneur. details and routine work.

4. The Development of Entrepreneurial Autonomy Capitalizes on people He is interested in

The entrepreneur develops autonomy in the with bright ideas and details and sensitive to
talents and gets their group cohesion and
operation of the enterprise as he takes the lead
opinion and consensus extract group
in all the activities of the organization especially
and with little regards for cooperation as a means
in the early stage of operation. His venture
people with mediocre to group
capitalized as he knows best the direction of the ideas. accomplishments.
enterprise as he is aware of the calculated risk
THE DEVELOPMENT OF ENTREPRENEURSHIP
The making of a Filipino entrepreneur is a
process of trial and error. The colonization of the
Filipino for more than 300 years is a great factor in
the slow development of entrepreneurial activity in
the country. Our concept of owning a small
business like a sari-sari store, or a small tailoring
shop, or a repair shop or market distribution outlet
already makes the person an entrepreneur. While
this concept is true to certain extent,
entrepreneurship is more than being self-employed
and making a living out of the income to support
family needs or a little of their wants.
The success of Filipino entrepreneur stands
in a very shallow foundation. Most Filipino business
starts on a copy-cat syndrome. For example, Maria
will start a sari-sari store and here comes Pedro
seeing the flourishing business of the Maria, opens
store opposite the other corner. Juana starts a
barbeque stand on the corner and Petra with
another outlet offering another variety of street
foods. This is the scenery in most Philippine
business condition.
The food business outlet is one of the most
abused and most prominent activities of some
Filipino business entrepreneurs, including that of
small outlet in the distribution of basic grocery and
other items called sari-sari store or in some cases
mini—grocery stores. Some enterprising outlets
include cellular phone load that adds to their
income.
1. The Making of Jollibee Food’s Corporation
The true Filipino entrepreneur is more than
of that a copycat. While we consider the success
of Jollibee Corporation in the food industry, the
founder is not a true Filipino in strict sense of his
origin. He has a Chinese blood, which he
inherited his business acumen from his parents
who knew how business grow and prosper.
He started with an ice cream stand and later
made it into an outlet for chicken joy and other
food items that answer the Filipino taste buds
especially for children. His success was based
on his talent for innovation and finding a
business that make him a multi-millionaire.
2. The Foundation of National Bookstore
The making of National Book Store is not a
myth of fortune and honey. The founder, Socorro
Ramos, came from a poor family who sustained
a living from selling various items to support their
basic needs. She was a working student while in
high school but because of her persistence and
perseverance, she graduated with honors. Being
a working student was not a hindrance to her
education as she painstakingly combined studies
with hard work.
After high school, she worked as a sales
clerk in Goodwill Bookstore owned by her
brother where she learned the rudiments of book
business. Learning the hard way in not an easy
task and starting a business empire of national
magnitude with more than 30 branches all
throughout the country was a product of
entrepreneurial acumen coupled with
determination and hard work.
Business capital for expansion and could
come from savings and other sources. The
Ramos couple knew that they could expand their
business with the savings that they had and
bought the present office of the store at Rizal
Avenue in Santa Cruz, Manila where a 9-story
was built. They built a building complex in Pasig
where printing and other services are being
made.
With the help of their children, they went
into vertical expansion by establishing printing
press to print local books and other office forms
and supplies, they ventured on other business
activities and expand horizontally and vertically
and made them of what they are today. Their
children were trained the same hard way and
they are all successful, fitted to inherit the new
growing business empire.
3. Leonardo Sarao, The Jeepney King
The success of the jeepney business is the
making of a Filipino entrepreneur. Sarao
jeepneys abound in all terminals during the early
period of transport development in the country
until copy-cats made jeepneys of similar styles.
Leonardo Sarao, the jeepney king, started the
business by being a helper mechanic until he
established his repair shop from meagre capital.
He then started buying second hand parts
and engines from Japan and built jeepneys that
abound in most streets of the Metropolitan
Manila and its suburbs. He established jeepney
factory with meagre capital and made savings to
expand his operations. He ventured into other
business activities and success was not based
 on his education but hard work and
determination. All his children became
professionals and are now engaged in various
business activities that made them of what they
are today.
The mentioned few successful stories of
Filipino entrepreneurs will serve as a self-propelling
reason for us to think that the making of
entrepreneurship is not served in silver platter. The
career of these few successful entrepreneurs was
built with entrepreneurial genius founded on slow
and painstaking hard work. Their personal objective
is not only to generate money to sustain basic
needs or wants but the greater drive for personal
fulfilment.
CHALLENGES FOR ENTREPRENEURSHIP
The new generation of young entrepreneurs
should look up the high standard of values and
character of entrepreneurs who got up the ladder of
success. Success in entrepreneurial activity is
based on the inner compulsion to achieve the
undeterred difficulties. The values and character of
JUAN TAMAD has no place in the world of
entrepreneurial vocabulary.
1. The new entrepreneur must be a doer and willing
to work hard until he achieves the task he wants for
himself.
He must possess the versatility for success
and self-confidence that could be overcome risk
with his strong determination. The exploration of the
total business environment must be put into total
perspective as it interplays with the development of
new opportunities and the risk attached to it.
2. Personal attention and comprehensive
awareness for the progress of the business is not
trusted on other people.
The entrepreneur must be in direct control of
operation and not in indirect control. He must be
able to measure the desired results. He must
personally verify the data and financial figures spent
and earned in the operation of the business.
3. The new entrepreneur must have high sense of
integrity that he stands firm on his principles and
ideas.
His word of wisdom is a contract to depend
on. He looks at things in different perspectives and
approaches things with varied alternatives to attain
what he wants. In short, he is visionary, innovative,
and unstoppable until he achieves the goal he sets
for himself.
4. Emotional stability is an important factor in the
making of an entrepreneur.
While he is impatient for mediocre
performance and lazy bones, his temper must
remain in control. Interpersonal relationships must
be the banner in negotiations and effective personal
communication is the key factor in closing business
deals.
5. The built in self- starting mechanism that drives
an entrepreneur to success is his executive ability to
manage people and resources.
This executive ability refers to how he plans,
organizes, directs and controls the physical and
material resources under his disposal. Many
entrepreneurs are describing to have shrewd
judgment in character that induced them to see
things the way it should be. An entrepreneur has a
passion for excellences and mediocre performance
has no place in his entrepreneurial vocabulary.
The new entrepreneurs and those who
believe in their capacity for long hours of work to get
things done, spent 75 percent in dreaming
innovation and putting them into action. Dreams
are built around creativity as he conceived original
idea out of his imagination.
The entrepreneur is like a multi-awarded
artist with a handful of Trophy of accomplishment
equipped with inner drive in transforming idea into
tangible reality. Sacrifice for long working hours and
abandonment of personal life pleasures make the
entrepreneur achieve their target goals. They
organize and develop their idea into achievable
activities and surpass the factor of risk.
THE STARTING POINT TO ENTREPRENEURIAL
SUCCESS
1. Start to be on your own.
An individual can never attain success in
entrepreneurial activity unless he starts his own
business and releases himself as an employee
for the rest of his life. Income from employment
is never enough as it is good only until the 15 th
and end of the month. Never have we found an
 ordinary employee who gets rich except those
who are connected with the government and
amass wealth through graft and corruption.
You may start an employee, get new ideas
and develop your own entrepreneurial style from
experience and education. Start dreaming and
be independent. Learn so save money and be
sure to put it in proper investment then make it
as starting capital to operate your enterprise.
Make that money work for you as you think to
make it grow bigger from the dreams you have
crafted out of your imagination for success.
2. Explore the business environment.
The Philippines being a haven of
opportunities is wide open for people who dream
to be rich and amass fortune as we have all the
natural resources. Find the things you can do
best and you must have the talent and interest in
doing it. Remember that the central objective of
any business is to produce the best goods and
those that provide better service.
With the talent you acquire in conducting
feasibility studies in your college days or those
that you learned from experience, apply your
knowledge in SWOT analysis. Consider
opportunities for expansion as business growth
is possible under good management.
3. Be in control.
The entrepreneur must be in the driver seat
of his business. You cannot trust your business
to somebody who does not own the ideals and
aspiration of the enterprise. Be in control of the
operation as you develop people whom you can
work with dedication and with values the same
as yours. Invest your time with people who are
achievers and do not lose your valuable time
with losers.
Motivate people to excel and make their
desire burning for success with their
accomplishments. Make them partners in
decision making and develop their ego needs for
proper recognition. People are your assets that
can help you propel success in your business.
Think that improving efficiency and effectiveness
will create more space for growth and
development.
4. Have a good accountant or a trusted financial
adviser.
While you, as an entrepreneur and busy
with the management of the business, a good
accountant or financial adviser is needed to help
you out in the financial activities of the
enterprise. They can help you re-invest your
money to other profitable operation.
While trust and confidence can be given,
you must also have the knowledge of the entry in
financial statements. Develop control procedures
that you are still in command in approving
transaction involving money and its
disbursements. While you economize your
expenditure, be sure that every peso is spent
wisely without sacrificing quality in products or
service.
5. Seek the advice of professionals.
You are not a superman to know all the
legal and other matters related to the operation
of the enterprise. Seek the services of a legal
consultant on matters with legal implications.
Have your income tax prepared by good
accountant lawyers or certified accountant on
matters with legal implications. Have your
income tax prepared by good accountant
lawyers or certified accountants that know how
to deal with government regulating body in terms
of tax payments.
ENTREPRENEURIAL MANAGEMENT DEMANDS
Many successful entrepreneurs in the
Philippines and those in foreign countries are not
making of known schools of management. Most
entrepreneurs came from scratch and have
acquired managerial expertise in making business
empires through shared hard work and dedication.
They possess characteristics and intelligence to
make things happen rather than wait for things to
happen.
1. The entrepreneurs is alert to opportunities
and perceptive to make things happen.
The entrepreneur looks at things much ahead
of other people. He sees things in different way and
develops strategies to make things happen the way
he perceived it to be.
2. The entrepreneur has the health and
endurance to work long hours
The dreamer entrepreneur could not stop
working until he finds solutions to his perceived
idea. He spends 75 percent of his 24 hour-time
thinking and working until he gets to the realization
of his dream. He is willing to sacrifice personal
pleasure in his quest for the true meaning of his
ideal set up of the business enterprise.
3. The entrepreneur of flexibility and change.
Success is for people with the profound need
to achieve their dreams and life aspiration.
Achievements are the ego of people with the inner
desire for independence.
3. The entrepreneur has strong determination in
decision making.
The strong personality of the entrepreneur
carries with it the power to make decisions. He is
aware of developing new markets and creates new
things to satisfy costumers’ needs and wants.

The entrepreneur does not have a one-track
mind. He finds new avenue or course of action as
he senses some danger zone with on his plans and
programs. He makes easy revision but he makes
sure that the tract on hand is still towards the
direction he wanted to achieve. He crafts new
alternatives solutions and devises ways to make a
difference.
4. The entrepreneur is self-assured.
The entrepreneur could not easily be rattled
by problems or uncertainties. He has great trust in
his capability to develop new things.
4. The entrepreneur develops feedback
mechanism for results.
The development of feedback mechanism is
important factor in the development of successful
business entrepreneur. He goes back to where he
starts and finds out things the way they are.
5. The entrepreneur is a result-driven individual.
Profit is the result of accomplishment. His
achievements are the driving forces that keep him
awake for more opportunities.

5. The entrepreneur seeks others’ opinion or

makes researches.

He believes that a person who asks

questions could only be fool for a minute but one
who asks no question could be fool for a lifetime.

PROFILE OF A SUCCESSFUL ENTREPRENEUR

Successful people in the field of business are

creators of things with difference. They are no
ordinary Juan Dela Cruz who we can be seen
around the corner.

Most successful entrepreneurs are described to

possess the following profiles:

1. The entrepreneurs has strong desire for

independence.

An entrepreneur would not like to be

attached to his employment. He seeks
independence and strives to develop his own
business.

2. The entrepreneur develops strong drive to

succeed.