Subject Code: Subject Title: Entrepreneurship

APPLIED06

Module No: 02 Topic: The Entrepreneurial Mindset Part 2

Teacher: Ms. Kaye Cabanero

I. OVERVIEW

Hello Entrepreneurs!
Based on our previous module, we have covered the following:
The Entrepreneurial Mindset Part 1:
1) The types of Entrepreneurs;
2) The Entrepreneurial Process; and
3) The characteristics of entrepreneurs.


Key notes to remember
An entrepreneur creates a firm to realize their idea, known as entrepreneurship, which
aggregates capital and labor in order to produce goods or services for profit.
 Entrepreneurship is highly risky but also can be highly rewarding, as it serves to
generate economic wealth, growth, and innovation.
 Ensuring funding is key for entrepreneurs.
 The way entrepreneurs file and pay taxes will depend on how the business is set up in
terms of structure.

A. Learning Competency

The learners will be able to:

 Discuss the relevance of the course

B. Specific Learning Objectives

The learners will be able to:

 Identify the factors that influence individuals to pursue entrepreneurial

outcomes
 Share the importance of how entrepreneurs think and how they make
decisions
 Create a graphic organizer showing the role of risk and failure in the
entrepreneurial process

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 II. LET’S BEGIN

Some people make a big deal out of the fact that there are many successful businesses
founded by entrepreneurs who do not have a college degree. Often cited are Apple
founder Steve Jobs, Microsoft founder Bill Gates, and Facebook co-founder Mark
Zuckerberg, and Uber co-founder Travis Kalanick.

In the Philippines, we have Philippine Airlines and Asia Brewery owner Lucio Tan. Some
of these individuals actually went to college, but decided to drop out after spotting a
business opportunity. In totality, IT IS UP TO YOU if you want to establish anything at
any time in your life; it is also best not to compare yourself to others because
entrepreneurship is built on your own authenticity, and drive.

III. LET’S DIG DEEPER

In this module about Entrepreneurial mindset (part 2), we will go

through the following discussion points: 1) The factors that influence
individuals to pursue entrepreneurial outcomes 2) How
entrepreneurs think and how they make decisions; and 3) The role of
risk and failure in the entrepreneurial process.

The factors that influence individuals

to pursue entrepreneurial outcomes
A number of Filipinos go into entrepreneurship for the following entrepreneurial
outcomes:

1. Income creation and employment- Individuals are able to make their own
income within their own pace. There is a sense of freedom when one enters
the entrepreneurship world.

2. Inclined with one’s capabilities- Individuals get into business enterprises

because of their apparent capabilities to undertake entrepreneurial activities.

3. The prestige association with entrepreneurship- Most entrepreneurs build

APPLIED 04- their
MODULE 02 – THE
business fromENTREPRENEURIAL
scratch, and are MINDSET PART their
able to grow 2 business into an
empire. This empire will then allow the entrepreneur to coordinate with 2
diverse individuals of different status to allow the business to continuously
flourish.
 4. The positive exposure- Communicating, coordinating, and experiencing the

How entrpreneurs think and

how they make decisions
The core of entrepreneurship is aimed at the actualization of intentions and is
directed toward the implementation of business plans. As intentions are translated
into actions and as plans are implemented, the entrepreneur has to make decisions.
These decisions are influenced and produced by mental processes referred to as
thinking. The types of mental processes that we will cover include critical thinking,
creative thinking, and strategic thinking.
a. Critical thinking- Refers to the systematic and rational way of providing an
answer to a question. It is systematic since it follows steps in responding to
an inquiry. Just like scientific inquiry, an answer to a question is preceded by
an understanding of the problem, providing possible answers, and reflecting
on the validity of these tentative answers.

b. Creative thinking- Refers to thought processes that bring about discovery of

new ideas. It does not follow a systematic or analytical process since it looks
at things from different perspectives. Sometimes, creative ideas start from a
dream, an insight, or from mere observation. The intent of creative thinking
is not to provide an answer but to ask questions that can lead to discovery
and change. It is useful in developing new products and new systems in
business operations.

c. Strategic Thinking- Involves thought processes that assess a current

situation, which can be useful in the formulation of plans for the future. It is
similar to critical thinking since it uses an orderly and logical system in its
assessment. But it also resembles creative thinking in its growth and future
orientation.

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 The role of risk and failure in
the entrepreneurial process
In the process of implementing a business plan, an entrepreneur will be faced with
numerous situations, challenges, and opportunities that will require flexibility in
decision-making. One of these challenges is managing risks.
Risks- Can be described as uncertain situations and developments that can increase
the probability of loss or business risks can be generally categorized into those
emanating from internal and external factors. Business risks can be generally
categorized into those emanating from internal and external factors:

1. Internal risks- are the dangers coming from the management of

resources of a business enterprise that may imperil its operations. Ex:
Liquidity and financial risks (borrowing at high interest rate or excessive
credit exposure).

2. External risks- are threats coming from various environments outside the
business firm. These can endanger the operations and profitability of a
firm. Some examples of external risks are a lethargic economy (slowdown
in economic growth), increased competition (introduction of better
products or substitute goods), and commodity price risks (decline in the
price of exportable goods).

The process of identifying, assessing and responding to these risks is called risk
management.

Your entrepreneurial
Ponder on some risks that your business may run into, and
challenge:
how you would identify, assess and respond to them. Think of
at least 3 internal, and external risks, and how you would
manage each one!

The role
of risk and
Entrepreneurs must respond to these various risks. In this light, they need to

failure in
develop what we call cognitive adaptability, which refers to the ability of individuals
to be involved in the process of producing several ways of decision-making based on

APPLIED
the
the identification and management of changes in their environment. It requires
qualities04-
of MODULE
flexibility,02
dynamism, and self-control on
– THE ENTREPRENEURIAL the partPART
MINDSET of the
2 entrepreneur.
4
entrepren
Cognitive adaptability demands that an entrepreneur be flexible and open to various
decision processes. With this flexibility, the entrepreneur can shift from using critical

eurial
thinking to creative thinking (or from strategic thinking to short-term thinking) in
making decisions, depending on the objective being pursued.
IV. WE’RE ON OUR WAY
Quiz 2.1- TRUE OR FALSE
Direction: Read each statement carefully, and indicate whether it is TRUE or FALSE. (5
points)

1. Internal risks refer to are threats coming from various environments outside the
business firm. FALSE
2. Critical thinking happens when one has a dream about a new idea. FALSE
3. The entrepreneurial journey means that one will encounter various risks. TRUE
4. Dynamism can be described as being closed-up and not being able to expect the
unexpected when one is in the entrepreneurial journey. FALSE
5. Strategic thinking can be considered as a combination of critical thinking and a
sprinkle of creative thinking. TRUE

V. HOW FAR HAVE WE GONE

Quiz 2.2- Multiple Choice
Direction: Choose the best answer for the given statements below. (5 points)
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 1. The following are a list of why one enters the entrepreneurial world EXCEPT for:
a. A person can go into the entrepreneurial world for the sense of freedom and
independence.
b. A person can go into the entrepreneurial world for the skills that they are able to
hone, and sharpen.
c. A person can go into the entrepreneurial world for the purpose of wanting to
establish change in the industry.
d. A person can go into the entrepreneurial world for the attention that they will be
able to obtain once they are successful in the business.

2. The ____________ of an entrepreneur is needed in the light of the variety of changes,

situations, problems, and issues that they have to confront. This implies that there is no
uniform response to these developments.
a. Dynamics
b. Dynamisms
c. Dynamism
d. Dynamicist

3. An entrepreneur should have self-control for the following reasons EXCEPT for:
a. They are constantly handling money, therefore they must discipline themselves
to have a clear border between personal and business funds.
b. They must know how to prioritize at all times.
c. They need to embody self-discipline to impress those around them, especially
their consumers.
d. They need to know when to say ‘NO’ or ‘YES’ to certain offers that may or may
not be important to the growth of their business.

4. Communicating, coordinating, and experiencing the entrepreneurial venture will hone

and expose the entrepreneur to different avenues to further develop themselves and
their business is the description for:

a. Exposing your employees

b. Exposing yourself
c. Exposing your business in a positive way
d. Exposing your rivals

5. Which quote best describes what risk is:

a. “You only live once; Just do it”
b. “Everything will go down in History; Just try it”
c. “No pain, no gain”
d. “Whatever happens; Everything will turn out okay in the end”

VI. WALKING THE EXTRA MILE

Direction: Create a graphic organizer of the role of risk and failure in the entrepreneurial
process
following the criteria provided below.
Note: A graphic organizer can also be a drawing. Don’t be hesitant on being creative!
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 Content: 10 points
Originality & Creativity: 20points
Effort and Presence of the graphic organizer: 10points
Early-bird submission: 10points
Total: 50 points

FOR MODULAR STUDENTS ONLY: Create your graphic organizer on any clean sheet of
paper, and submit it along with your modules.

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