Republic of the Philippines

NORTHERN ILOILO STATE UNIVERSITY

VICTORINO SALCEDO CAMPUS
Sara, Iloilo

Course Code : THC 10

Descriptive Title : ENTREPRENEURSHIP IN TOURISM AND HOSPITALITY
Term and Academic Year : 2nd Semester, AY 2022-2023
Department and Year Level : BSHM III
Professor : DIANNA MAE C. DE JULIAN

Module 1, Lesson 1
Entrepreneurship Concepts
I. Introduction
In this lesson, you shall be introduced to concepts of Entrepreneurship, Entrepreneurship as a way of life,
Entrepreneurship and Innovation, Entrepreneurship and Economic growth and the benefits of entrepreneurship to
society.

In order to gain a thorough understanding of this lesson, you have to read the discussion and you are also
tasked to answer the assessment and submit requirements found in the “Learning assessment” section.

Time Frame: 3 hours Date of Submission:

II. Learning Outcomes At the end of the lesson, you must have:
1. understood the concepts of entrepreneurship;
2. discussed the importance of innovation in entrepreneurship; and
3. discussed the benefits of entrepreneurship in society.

III. Learning Contents

What is Entrepreneurship?
Entrepreneurship is recognized as an important factor in the socio-economic development of a society. When
an entrepreneur engages in an activity that increases his productivity; he produces wealth not only for himself but also
for the society as a whole.
Entrepreneurship refers to the mobilization of resources include land, labor, and capital and are called the
factors of production. Sometimes they are referred to as the six M’s that represent:
M anpower {labor}
M oney {capital}
M aterials {supplies and raw materials}
M ethods {processes and technology}
M achineries {tools, equipment, devices}
M oment {time}
The efficient and effective utilization of these M’s will result to the production in terms of goods and services or
both, which can satisfy the needs of the consumers. In return, the product is expected to bring on profit for the
entrepreneur. Profit is the motive and reward or the return of investments put in by the entrepreneur.
The entrepreneur is a proprietor, investor, or organizer of the factors of production. The entrepreneur is in
business and he earns money by providing people with products and services that they need.
Entrepreneurship as a way of life
To view Entrepreneurship as purely an activity is somewhat limited. Entrepreneurship may also be viewed as a
value, an attitude and a way of life. While a big majority of entrepreneurs are in the business sector, being
entrepreneurial is not confined to this group.
One can be an entrepreneur as a professional, a doctor, a lawyer, a manager, a teacher, etc.
One can be considered an entrepreneur when he possess the entrepreneurial behavior. This means combining
creativity, challenge, hard work and getting satisfaction from having done something which benefited others just as it
had benefitted himself. It is to strive for efficiency in order to maximize the output from a limited input; it is to respond
effectively to the problem, needs, opportunities and demands of the particular time and place.
To be an entrepreneur is to be productive in order to contribute to the growth of society. With this view,
entrepreneurship development focused on value formation – acquiring entrepreneurial competencies, qualities and
skills.
Entrepreneurship and Innovation
Introducing innovation is the entrepreneur’s response to the needs of the people or the perceived economic
opportunities. Innovation implies newness, variation, originality, novelty or uniqueness. Innovativeness is one of the
hallmarks of the entrepreneur.
To be an entrepreneur is to be innovative – to conceive ideas and transform such ideas into reality. It is to
respond in a concrete way to the opportunities in the environment.
The innovative entrepreneur introduce new products, new ways of doing things, new methods of production.
His creativity enables him to exploit new sources of materials and discover new markets. Because of this, he becomes a
catalyst for progress and development.
Our everyday lives are revolutionized by innovations. A product or an idea is put to other uses, adapted, and
modified substituted, reversed or combined resulting to a new idea for a better life.

Module 1, Lesson 1 Entrepreneurship Concepts Page | 1

 Republic of the Philippines
NORTHERN ILOILO STATE UNIVERSITY
VICTORINO SALCEDO CAMPUS
Sara, Iloilo

To survive in business, an entrepreneur must be innovative. Likewise, an innovation needs an entrepreneur so

that it can be made useful for the people to improve their lives.
Entrepreneurship and Economic Growth
The needs of the people are many and complex- from the basic needs necessary for survival to the higher
needs of self-fulfillment. Obviously, it is difficult for everyone to provide for everything he needs.
A need for a product or service is an economic opportunity. When many members of the community practice
entrepreneurship, economic development takes place rapidly.
The following are the benefits of entrepreneurship to society;
1. Entrepreneurship creates employment.
Business often needs to hire people to do things. This means more jobs and more gainfully employed members
of society. People are able to feed their families, send their children to school, provide them with decent
home, get medical services when needed and contribute revenues through taxes.
2. Entrepreneurship improves the quality of life.
By continuously innovating and developing new products and services, entrepreneurs produce better goods
and services, efficient production systems, improve machineries as well as improve the standard of living. This
makes life easier and more comfortable for society in general.
3. Entrepreneurship contributes to more equitable distribution of income.
Entrepreneurs see the economic potentials of raw materials and other resources. By converting these
resources into finished products, people enjoy the benefits of development. Putting up an enterprise in a
locality will disperse these development benefits to many people and other communities.
Entrepreneurship also helps prevent monopolies and income is more evenly distributed. This means less poor
people and consequently, social unrest is minimized.
4. Entrepreneurship utilizes and mobilizes resources for national productivity.
Economic development is achieved when the resources is put to productive use. Entrepreneurship provides an
avenue for utilizing capital, manpower and other resources for productive endeavors.
5. Entrepreneurship bring social benefits through the government
The taxes, duties and licenses paid by the entrepreneurs and the income taxes paid by workers bring revenues
to the government. In turn, the government is able to provide services and development projects to the
people.
It is evident therefore, that entrepreneurship directly affects the social and economic development of the
people. The more a society engage in entrepreneurial undertaking, the more it is likely to develop economically and
socially. For this reason, the Philippines is actively encouraging and promoting entrepreneurship development
throughout the country.
IV. Learning Assessment
Answer the following questions:
1) Discuss elaborately the definitions of Entrepreneurship.
2) Give a scenario where innovation is important in hospitality business.
3.) Elaborately explain the benefits of entrepreneurship in the society. Cite a real life situation/example.
Scoring Guide:
Each answer shall be evaluated using these criteria:
Content 10 pts.
Organization of ideas 5 pts.
Language facility 5 pts.
Total score: 20 pts

V. Enrichment Activities/Outputs
1. Entrep Learning Activity
Instructions:
 In a short bond paper, give one example of a known person in the field of entrepreneurship.
 Discuss what innovation he had made in order to differentiate from his competitors.

Scoring Guide:
Organization of ideas ---------------40 %
Relevance to the topic ------------------ 50 %
Neatness and Creativity ---------------- 10 %
Total: 100%

VI. References

Osorno, R., & Bajao, G. (2020).Entrepreneurship in tourism and hospitality.Quezon,City:Wiseman’s Books Trading, Inc.

Sorolla, L., & Sorolla, R. (1996). Entrepreneurship for beginners. La Paz, Iloilo City: Seguiban Printers and Publishing
House

----End of Module 1, Lesson 1----

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