WEEK 1
Entrepreneur
 The term “entrepreneur” originates
from the French word entreprendre
which means to “undertake” It
connotes a business paradigm
which signifies the start of a new
business undertaking.
 On the other hand, the term
“entrpreneurship” comes from the
word entrepreneur. It refers to a
field of practice or process.
 As compared to an entrepreneur
which is a person practicing
entrepreneurship
 Comparatively, the relationship is
like that of a manager and the
management in which a manager is
a person who practices correctly
the concept of management.
 “The art of observing correct
practices in managing and
operating a self-owned wealth-
creating business enterprise by
providing goods and services that
are valuable to the customers.
 Understanding the correct meaning
of the term dispels the doubts and
misconceptions with the definition;
promotes and enhances better
comprehension of the
entrepreneurial field; and helps
build a strong foundation about
entrepreneurship.
SMALL BUSINESS AND ORDINARY SMALL
BUSINESS
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.
 The term also includes the small
and medium enterprises (SMEs)
that have been strongly promoted
by both government and non-
governmental organizations
(NGOs) in their desire to improve
the lives of the Filipino people
through entrepreneurship.
ORDINARY SMALL
BUSINESS
On the other hand, 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
WHY DOES THIS HAPPEN IN
THE PHILIPPINES?
 The reason could be that many
Filipino families resort to opening
ordinary small businesses since it is
the easiest and most practical way
to augment their income.
 A small amount of money can be
used to start up a simple sari-sari
store business, or a small stall or
pushcart in which food and other
staff can be sold in quantities.
 However, the mere opening of a
business enterprise is not
entrepreneurship and the person
owning and running its day-to-day
operations is not an entrepreneur
but rather a businessperson.
 Most of the owners of ordinary
small businesses in the Philippines
may not be considering
entrepreneurship as an advocacy.
 Some of them may not have even
heard of the term and merely
WEEK 1
intend their businesses to serve as
the source of their livelihood or as
a means to lessen their financial
problems. In reality, many ordinary
small businesses in the Philippines
have not really progressed ever
since they started some years ago.
What is worse is that others have
gone bankrupt and collapsed after
some time.
SALIENT FEATURES OF
ENTREPRENEURSHIP
 From its operational definition,
entrepreneurship consists of five
salient features.
1. It is an art of correct practices.
2. It is a wealth-creating venture.
3. It provides valuable goods and
services.
4. It entails opening and managing
5. the self-owned enterprise.
6. It is a risk-taking venture.
 The salient features of
entrepreneurship provide better
understanding of the whole
concept. They also act as the point
of reference in determining
whether a particular business
endeavour is operating within the
realm of entrepreneurship
1. ENTREPRENEURSHIP IS
AN ART OF CORRECT
PRACTICES
Entrepreneurship is:
• An art and not a science-It is not
governed by fixed and absolute
rules, whereas science is. Thus,
there is constant change which
denotes movement and innovation.
• Is not static or stagnant -It
continuously grows, develops,
improves, and expands; the change
does not stop.
The development of
entrepreneurship through the years
is a proof that it is an art that
continuously evolves and responds
to the changing needs of the
people.
• As an art, entrepreneurship is
closely related to creativity - By
creativity, there is a constant
change or evolution that
contributes towards the
enhancement of the enterprise.
Creativity results in new ideas
which are the backbone of
entrepreneurship.
 Entrepreneurs keep on searching
for something new- They find ways
to transform new ideas into
entrepreneurial opportunities.
 As a future entrepreneur, one
should always remember that
nothing is permanent in the field of
entrepreneurship. What is
applicable to one entrepreneur may
not be applicable to another.
Certain things may happen to one
entrepreneur but may not happen to
another.
 Entrepreneurship should be
practiced not as a science but as an
art.
 Creativity should always be applied
to entrepreneurial undertakings by
regularly evaluating the market and
the environment and responding to
the changes in them.
 Art in entrepreneurship is also
related to the correct practices or
ways of carrying out
entrepreneurial activities.

WEEK 1
ENTREPRENEUR – An
entrepreneur transform feasible
new ideas into an entrepreneurial
venture.
- Has to perform entrepreneurial
activities correctly regardless of
whether they are undertaken
easily or not.
SMALL BUSINESS PERSON-
An ordinary small business person
only builds upon existing ideas to
gain immediate earnings from
his/her business.
- Has the freedom to manage and
operate his/her business
according to what pleases
him/her ideally he/she prefers
business activities which are
done easily.
2. ENTREPRENEURSHIP IS A
WEALTH-CREATING
VENTURE
 This feature sounds simple, but this
has been most misconstrued
because of the word wealth. We
often hear the old maxims "Health
is wealth" or "Knowledge is
wealth.
 " However, this is not the concept
of wealth in entrepreneurship. In
most instances, ordinary small
business people equate wealth with
the term profit.
 In the parlance of accounting profit
represents the excess income or
revenue from the cost and
expenses. Although profit may be a
good indicator of wealth, it can be
measured in different ways. The
economist, for example, has a
different perspective of wealth
from that of an accountant Profit,
therefore, in its strict sense, does
not equate to wealth. Example: To
put it differently, assume that the
cost of your product is P60. You
sell this product to a customer for
P80. As a result of the sale,
definitely you have a mark-up or a
profit of P 20 is gained. However,
the question is, “Is one enriched by
twenty pesos?" In case the sale is
not in cash (i.e., the sale is on
account or on credit), and the
customer does not pay, you lose P
80 in the transaction.
3. ENTREPRENEURSHIP
PROVIDES VALUABLE
GOODS AND SERVICES
 The owner of a business, in most
instances, is engaged in the sale of
goods and services. However, the
mere act of selling goods or
providing services does not make a
person perform or act within the
concept of entrepreneurship.
Anybody can sell goods or services
for a price. A peddler in the bus
station.
for example, sells goods to the
travelers. However, he/she cannot
be considered as an entrepreneur. It
would be safe to address him/her as
an ordinary businessperson.
4. ENTREPRENEURSHIP
ENTAILS OPENING AND
MANAGING THE SELF-
OWNED ENTREPRISE
 This feature highlights two
important elements:
1. The concept of opening a self-
owned enterprise and;
2. the concept of managing it
The entrepreneur opens his/her
own business under the principle of
entrepreneurship. It must be sell-
 owned in order to qualify as an
entrepreneurial endeavor. A
business is considered selfowned
WEEK 1

when the person managing its daily

activities is also its owner. This is a
straightforward requirement of
entrepreneurship.

 Businesses that are being managed

by others for the benefit of the
owners do not fall within the
sphere of entrepreneurship. Such
businesses are operating under the
concept of intrapreneurship.
 The concept of intrapreneurship
may include the business practices
of franchising and buyout.

5. ENTREPRENEURSHIP IS A
RISK TAKING VENTURE

 The basic concept of risk in

entrepreneurship can be expressed
in this statement, "Risk is inherent
in an entrepreneurial venture."
 In other words, once an
entrepreneurial venture is born
because of new ideas or
opportunities,

✓ Risk comes simultaneously with

the venture.
✓ Risk cannot be detached from
any entrepreneurial venture and the
only way to remove it is to close
the venture.

 The risk in entrepreneurship is

called a business risk. So, every
time the word risk is used in this, it
refers to a business risk. The
approach in handling business risks
differentiates an entrepreneur from
an ordinary businessperson.