Cabatuan National Comprehensive High School

Senior High School Department

ENTREPRENEURSHIP

LEARNING COMPETENCY

This Lesson, students will be able to:

1. Identify competencies in entrepreneurship.

COMPETENCIES FOR ENTREPRENEURIAL SUCCESS

As an entrepreneur you must be a creative innovator who accepts risk in losing profit by
investing your capital. He should know how to generate business and job opportunity, easy to
think of a solution and know how to value its customers. As an entrepreneur you need to
possess some qualities to be successful.

Entrepreneurial competencies refer to the characteristics of an entrepreneur. It requires

certain qualities or characteristics for establishing and running a business enterprise.

ENTREPRENEURIAL SKILLS NEEDED TO BE A SUCCESSFUL ENTREPRENEUR

Entrepreneurs need a unique set of skills to run the business effectively. These are the
entrepreneurial skills needed in order to become a successful entrepreneur. Namely, technical
skills, human skills, and conceptual skills.

1. Conceptual Skills. Conceptual skills refer to one’s ability to think; which includes one’s
ability to plan and identify opportunities and think of solutions whenever a problem
come up.
2. Technical Skills. Technical skills refer to one’s expertise in a given field.
3. Human Skills. Human skills refer to one’s ability to work well with other people.

Furthermore, according to www.ideasforleaders.com, there are three levels of

competencies, which all entrepreneurs need:

1. Personal competencies – These are your abilities to ground yourself so that you are
secure and self-assured in whatever situation you may find yourself

Ex. creativity, determination, integrity, self-criticism.

2. Interpersonal competencies – These are your ability to lead, influence,

communicate, supervise, negotiate, and control people at all levels. It is the ability to
get along with people and motivate people to perform jobs. Entrepreneurs must
effectively manage people (baseread.com).

Ex. communication, engagement, delegation

 3. Business competencies – These are set of particular abilities and knowledge that sets
a company apart from its competitors (yourbusiness.azcentral.com). It also refers to the
key characteristics that successful entrepreneurs should have in order to be successful

Core vs. Common Competencies in Entrepreneurship

Competencies in entrepreneurship play a leading role in making entrepreneurs

successful (baseread.com).

Entrepreneurial competencies facilitate opportunity recognition, help adapt rapidly to

changes, enhances business performance, strengthen the firm’s competitive position and stir
the achievement of organizational success. It is the sum total of the personality, skills and
knowledge that the entrepreneur possesses, which are necessary to effectively perform their
functions and responsibilities (Edralin, D. M., 2016).

Competence is an underlying personal characteristic which leads to superior performance.

It is a combination of knowledge, skills, attitudes, and motives (baseread.com).

Core competence is the foundation for sharpening a company's competitive edge and it
guides brand reputation, business growth, and marketing strategy (www.thebalancesmb.com).

Common competence is one that describes the knowledge, skills and abilities found in
most or all position (www.ifpm.nifc.gov).

Examples of Core and Common Competencies in Entrepreneurship

Core Competencies Common Competencies

1. Organizing and Planning 1. Analytical and critical thinking

2. Cash flow management 2. Decision making
3. Personnel management 3. Leadership
4. Operations and distribution 4. Communication
5. Customer Relations 5. Computer Literacy
6. Bookkeeping/Accounting 6. Human Relations
7. Promotions and Advertising 7. Managing Change
8. Resources Management 8. Creative Thinking
9. Financial Management 9. Time Management
10. Information Management 10. Conflict Management

PERSONAL ENTREPRENEURIAL CHARACTERISTICS CLUSTERS AND BEHAVIORAL

INDICATORS

In the world of business, an entrepreneur should possess desirable characteristics to

properly perform their duties and responsibilities, which in turn to be a mitigating factor in
achieving company’s success. The following are the primary characteristics of an entrepreneur
which can be classified according to cluster.

ACHIEVEMENT CLUSTER PLANNING CLUSTER POWER CLUSTER

Opportunity seeking Goal setting Persuasion and networking

Persistence Information seeking Self-confidence

Commitment to the work Systematic planning and

contract monitoring

Risk Taking

Value for efficiency and

quality

Behavioral scientists and psychologists who have been studying entrepreneurs found
that successful entrepreneurs all over the world have some characteristics in common. They
were able to identify ten personal entrepreneurial characteristics (PECs) under the following
clusters:

I. Achievement Cluster

Successful entrepreneurs are people who accomplish things. They have what
psychologists call the “need to achieve” They want to perform tasks excellently not only for
prestige or money but for the sake of excellence itself. When entrepreneurial individual work on
something, they like to know afterwards that it was a job well done and this alone is enough to
make them happy.

Achievers rate high in the following PECs

1. Opportunity-Seeking. An entrepreneur is said to be a good opportunity- seeker if he

sees and acts on new business opportunities and seizes unusual opportunities to acquire
financing, equipment, land and work space or assistance.

2. Persistence. A persistent individual is one who takes different actions to overcome an

obstacle makes personal sacrifice or spends extraordinary efforts to complete a job
sticks to his judgments in the face of opposition or early lack of success

3. Commitment to the Work Contract. The true-blue entrepreneur is committed to the

work that he has agreed to do. When he accepts a job, he takes full responsibility for its
completion. No job is too small, too dirty or too difficult to be done. When necessary, he
pitches in for workers to get things done. He exerts extra effort to satisfy the costumer.
In the end, if he fails, he would take full measure of the blame. But if he succeeds, he
expects to get full credit.
 4. Risk Taking. A gambler is a person who takes high risks and so he tends to lose all his
money and even his shirts in the end. An entrepreneur is not a gambler. A successful
entrepreneur takes calculated, moderate, or reasonable risks where he perceives the
chances for winning to be good. In other words, he states a preference for situations
that involve moderate risks.

5. Demand for Quality and Efficiency. A true entrepreneur is not satisfied with
mediocre work. He sets a high standard of performance. The high standard of
performance makes him act to meet or exceed existing standards of excellence or
improve on past performance. He strives to do things better, faster, or cheaper.

II. Planning Cluster

Going into business is the result of deliberate goal-setting, tireless information-seeking

and systematic planning and monitoring by the entrepreneur.

6. Goal-Setting. An entrepreneur always thinks not only of what he wants to accomplish

day-to-day but also in one, two, or five years from now. In other words, he sets clear
and specific short-and-long term objectives. He thinks of today’s activity as a small step
towards that which he eventually wants to accomplish.

7. Information-Seeking. As a careful planner, the successful entrepreneur always makes

it a point to seek information that is relevant and useful to his present or future
business. He obtains information from clients, suppliers, experts, competitors, contacts,
and information networks. He also consults experts for business or technical advice.

8. Systematic Planning and Monitoring. The successful entrepreneur does not only set
short-and-long –term goals. He does not only seek information regularly. He also
systematically plans and monitors his activities and performance. He develops and uses
alternatives and monitors his progress. He is ready to switch to alternative strategies
when necessary to achieve his goals.

III. Power Cluster

The personal motto of a successful entrepreneur is “I can”. He thinks that he can

achieve things; he can convince people to his way of thinking; he can influence the outcome of
events. He is a natural leader. He is decisive and he believes in his power.

9. Persuasion and networking. A persuasive person who readily establishes a network

or personal business contracts around him usually makes a good entrepreneur. In order
to persuade others, the entrepreneur uses deliberate strategies. In order to accomplish
his business objectives, he uses his network of useful friends and acquaintances.

10. Self-Confidence. The entrepreneur exudes self-confidence. He strongly believes in

himself and his own abilities. No challenge is too difficult nor is a task too big that the
entrepreneur would indulge in self-doubt. When he enters a business, it is because he is
confident that the business would be successful and profitable.
SUCCESS STORY OF SUCCESSFUL FILIPINO ENTREPRENEUR

Leonardo Sarao, he Jeepney King

This refers to the characteristics, qualities and traits of entrepreneurs that makes them
successful in their chosen ventures. Not to mention all, but I will be telling you a success story
of one of the successful Filipino entrepreneur. He is Leonardo Sarao. They called him the
jeepney King.

The success of the jeepney business is the making of a Filipino entrepreneur. Sarao
jeepney 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 form a meagre capital.

He 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 the jeepney
factory with meagre capital and made saving to extend his operation. 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 now engaged in various business
activities that made them of what they are today.

The successful stories of Leonardo Sarao will serve as a self-propelling reason for us to
think that making entrepreneurship is not serve in silver platter. The career of this successful
entrepreneur is 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
greater drive for personal fulfilment.
Read the selection and try to answer the questions there after.

“Great things start from small beginnings.” This is probably one of the best catchphrases
to portray the victorious journey of self-made billionaire Lucio C. Tan, who once worked as a
janitor to put himself through college. As an individual fueled by passion, hard work, and
perseverance, Mr. Tan has become one of the country’s richest men, with business interests
spanning from banking, airline, liquor, tobacco, real estate, and education, among others.

The now 85-year-old business tycoon was born in the province of Fujian in China whose
family moved to the Philippines in hope of better fortune when he was still young. As the eldest
among his siblings, the young Mr. Tan grew up with a heavy responsibility on his shoulders to
help provide for his family. He worked his way through college studying Chemical Engineering
at Far Eastern University in Manila and started taking on different works to earn a living.

In one of his early jobs, Mr. Tan worked as a janitor in a cigarette factory. As the owner
saw his hard work, he was promoted as a tobacco cook, creating and regulating the product
mix, and assigned as a tobacco leaf dealer thereafter.

Using all the knowledge and experiences he acquired from his previous jobs, Mr. Tan in
1966 opened his own cigarette company named Fortune Tobacco. It became successful and
was able to expand in the following years. In a span of just nearly 15 years, the company
turned to be the largest cigarette manufacturer in the country.

At present, aside from being the chairman and chief executive officer of the LT Group,
Mr. Tan serves as the chairman of the Philippine Airlines, Inc.; Asia Brewery, Inc.; Eton
Properties Philippines, Inc.; Macro Asia Corp.; Fortune Tobacco Corp.; PMFTC Inc.; Grandspan
Development Corp.; Himmel Industries, Inc.; Lucky Travel Corp.; PAL Holdings, Inc.; Air
Philippines Corporation; Tanduay Distillers, Inc.; The Charter House, Inc.; Allied Bankers
Insurance Corp.; Absolut Distillers, Inc.; Progressive Farms, Inc.; Foremost Farms, Inc.; and
Basic Holdings Corp. He also sits as a director of the Philippine National Bank.

Questions:

1. What were the challenges faced by Mr. Lucio Tan?

2. What are some of his achievements?
3. What made Mr. Lucio Tan successful?
4. If you were Mr. Tan, do you think you will be able to hurdle all the challenges he had
in the field of entrepreneurship during his younger years? Why?