Entrepreneur – originates from the French word “entreprendre” which means to undertake

Entrepreneurship – comes from the word entrepreneur; it refers to a particular field of

practice or process, as compared to an entrepreneur which is a person practicing
entrepreneurship
Small Business – refers to a business or enterprise that correctly adopts and practices the
principles of entrepreneurship; it is owned by one person with a limited workforce of not more
than 20 persons.
Ordinary small business – pertains to a business enterprise managed and operated by an
owner who is not an advocate of and does not practice the concepts and principles of
entrepreneurship.

Salient Features of Entrepreneurship:

1) Entrepreneurship is an art of correct practices
2) Entrepreneurship is a wealth creating venture
3) Entrepreneurship Provides Valuable Goods and Services
4) Entrepreneurship entails opening and managing the self-owned enterprise
a) The concept of opening a self –owned enterprise
b) The concept of managing it
5) Entrepreneurship is a Risk-Taking Venture
Profit – represents the excess income or revenue from the cost and expenses.
Wealth – is the abundance of money, property or possession
Business Risk – the risk in entrepreneurship

Theories of Entrepreneurship:

1. Innovation Theory – this was contributed by Joseph Schumpeter, an Austrian

economist and political scientist; regards economic development as the product of
structural change or innovation.
2. Keynesian Theory – was developed by John Maynard Keynes, a British economist; put
so much emphasis on the role of the government in entrepreneurial and economic
development, most especially when the economy was experiencing depression.
3. Alfred Marshal Theory – this was introduced by Alfred Marshall, an English economist;
he regarded the entrepreneurs as the prime movers in the organization.
4. Risk and Uncertainty-bearing theory – this was conceptualized by Frank Hyneman
Knight, an American economist; he believed that the entrepreneur must anticipate
possible random events to happen while shouldering the risk at the same time.

Other theories on Entrepreneurship:

1. Weber’s sociological theory – Max weber stressed that social cultures are the primary
driving elements of entrepreneurship.; the entrepreneur is expected to perform the role
of a good constituent by executing his entrepreneurial activities in line with good
customs and traditions, religious beliefs and morals.
2. Kaldor’s technological theory – was developed by Nicholas Kaldor who considered
modern technology as an essential factor in production.
3. Leibenstein’s gap-filling theory – Henry Leibenstein proposed that the primary role of
entrepreneurship in any economic activity is to fill the existing gap.
 4. Kirzner’s learning-alertness theory – Israel Kirzner was the main proponent of this
theory; he pointed out spontaneous learning and alertness as the two major attributes of
entrepreneurship in any given economy.

Entrepreneurship and the activities of ordinary small business differ in the following
areas:
1) Motive in opening a business
2) Perception of risk in the business
3) Reactions to changes in the environment
4) View on Competition
5) Vision for development and growth
6) Horizon of Business Operation
7) Sources of business funds
Misconceptions on Entrepreneurship:
1) Entrepreneurship applies only to manufacturing businesses
2) Entrepreneurship applies only to small businesses
3) Entrepreneurship applies mostly to persons with good educational background in
business courses
4) Entrepreneurship applies only to a good economy
5) Entrepreneurship is simply opening a small business
External Environment – refers to the physical environment, societal environment and industry
environment

1. Physical environment:

a. Climate
b. Natural Resources
c. Wildlife

2. Societal environment:

a. Economic forces
b. Sociocultural forces
c. Political forces
d. Technological environment

3. Industry environment

a. Government
b. Competitors
c. Suppliers
d. Customers
e. Creditors
f. Employees
Answer the following questions:

1. What are the difference between Entrepreneur and Entrepreneurship?

An entrepreneur is an individual who starts and runs a business with limited resources and planning.
This individual is responsible for all the risks and rewards of their business venture. The business
idea usually encompasses a new product or service rather than an existing business model.
 2. Distinguish between an entrepreneur and an ordinary business person.
Business owners can also manage companies that sell products they might not be familiar with, as it
can be more important that customers are satisfied. An entrepreneur establishes their company
intending to sell a completely original product or service that does not yet exist in the market.

3. Are you a risk-taker or not? Why do you say so?

4. How do you face or avoid risks?
5. Differentiate how an entrepreneur and an ordinary businessperson handle
business risk.
 Republic Of the Philippines
Laguna State Polytechnic University
Province of Laguna
COLLEGE OF TEACHER EDUCATION

Ericka Ponteres
BTLEd-IA-2B

Importance of Entrepreneurship to the Filipino People

Entrepreneurs are often key to developing ideas and solutions to problems while
creating new products. So, having a business is important to Filipinos for their
survival and development. Small businesses like sari-sari store is common business
of most Filipinos. Sari-sari stores are great avenues to sell basic household items
like cleaning supplies and daily essentials. These often have higher prices than food
and beverages, which means they offer more profit margins for your business.

Importance to the local community

Entrepreneurship importance in local community like Small and local businesses
have more community impact than on their designated local. The ability to reflect a
community’s character and interact with their neighbors on both a business and
personal level is something many large corporations are unable to do.

Importance to the Philippine Economy

In a country like the Philippines where unemployment is rising and people are having
difficulties getting by, entrepreneurs are one of the important assets to the Philippine
economy. Not only in the Philippines but in any country of the world, entrepreneurs
are considered to be very important, especially for the economy. Because
governments are unable to finance everything and employ every citizen,
entrepreneurs help to improve a nation's economy and people's lives by creating
jobs, growing businesses, developing distinctive products, offering services, and
assisting in the flow of money throughout society.
Most famous business here in Philippines is the Jollibee. Jollibee is the largest fast
food chain brand in the Philippines, operating a network of more than 1,500 stores in
17 countries. A dominant market leader in the Philippines, Jollibee enjoys the lion's
share of the local market that is more than all the other multinational fast food brands
in PH combined.
Overall, Jollibee's net income jumping by 26% to P7. 5 billion in 2022 is a positive
development for the Philippine economy. It is an indication that the country's
business sector is capable of weathering challenges and emerging stronger, which
bodes well for the future of the country's economy.
 Republic Of the Philippines
Laguna State Polytechnic University
Province of Laguna
COLLEGE OF TEACHER EDUCATION

Ara Grace Leonardo

BTLEd-IA-2B

Importance of Entrepreneurship to the Filipino People

Importance of Entrepreneurship to Filipino People Entrepreneurship is vital for
Filipinos as it boosts the economy, creates jobs, and empowers individuals to
address societal issues. It also reduces poverty, encourages self-reliance, and
contributes to overall national development, while enhancing resilience during
economic uncertainties. On example of this is the Jollibee who's founded by Tony
Tan Caktiong that ghad given jobs to the Filipino especially to working students.

Importance to the local community

Entrepreneurship is vital for local communities as it boosts the economy, creates
jobs, and empowers people to tackle community challenges. It also fosters
collaboration, understanding local needs, and contributes to a thriving and resilient
community. One example of this is where I work, the BJ Tayo, our boss or the
founder of this let their relatives and working students work for them.

Importance to the Philippine Economy

Entrepreneurship is crucial for the Philippine economy, creating jobs, income, and a
resilient economic environment. It enhances competitiveness globally, making a
significant impact on the country's progress and stability.