This means that not only the life of the entrepreneur is improved but also the

society where the business is located.

CONCEPT OF ENTREPRENEURSHIP
The word “entrepreneur” was derived from the French verb
enterprendre, which means “to undertake.” This is pinpointing to those
who “undertake” the risk of enterprise.
The enterprise is created by an entrepreneur and the process is called
“Entrepreneurship.”
Entrepreneurs are innovators. They are willing to take the risks and
generate unique ideas that can provide profitable solutions to the needs of
the market and the society.

FACTORS AFFECTING ENTREPRENEURSHIP

1. Personality Factors
which include:
a. Initiative – Doing things even before being told.
b. Proactive – Which means he can classify opportunities and seize it. DIAROSE C. TAN, LPT
c. Problem Solver – Which means he can retain good relations with other TEACHER
people.
d. Perseverance – Meaning he will pursue things to get done regardless of
challenges.
e. Persuasion – Means that he can entice people to buy even if they don’t
want to.
f. A Planner – He makes plans before doing things and does not fail to
monitor it.
g. Risk-taker – Which means that he is willing to gamble but he will calculate
it first.
2. Environmental Factor
which include:
• Political

3
CHAPTER 1  Working long hours
 High level of stress
ENTREPRENEURSHIP
 Potential loss of income
Businesses are the backbone of the economy.
Entrepreneurs play an important role in developing the economy through REWARDS:
providing the needed products and services including the solution
to the problem of unemployment.  Being your own boss
 Doing something you enjoy
Entrepreneurship is encouraged by the economy because it can provide  Having opportunity to be creative
a lot of opportunities for the unemployed people.
It will increase per capita income, improve standard of living and increase DIFFERENCE BETWEEN AN ENTREPRENEUR AND A
individual savings, provide revenue to the government in the form of BUSINESS MAN
income tax, value added tax, export duties, import duties, and balanced
An entrepreneur is an individual having an exclusive idea to establish a new
regional development
venture. A businessman is an individual who establishes a business with an
Is a proactive process of developing a business venture to make a profit. old business idea.

Proactive - active through action, and commitment, not just active through An entrepreneur is successful if the business that he or she envisioned has
mindset materialized into a thriving industry with regular customers and financial
gain. He/she either decides to maintain his/her business or expand. This
It involves seeking opportunities for market, establishing and operating a eventually reflects on the society and the economy as a whole.
business out of the opportunity, and assessing its risk and rewards through
close monitoring of the operations. With this definition, being an entrepreneur
may seem difficult, but it can be rewarding if the enterprise flourishes. RELEVANCE OF ENTREPRENEURSHIP TO AN
ORGANIZATION
Entrepreneurial activities today have become very important and are keys
1. Development of Managerial Capabilities
to economic development.
This means that one of the benefits an entrepreneur gets is to develop his
Growth, industrial development, including employment generation, depend managerial skills.
upon entrepreneurial behavior of the country.
2. Creation of Organizations
RISKS:
Which means that because of entrepreneurship many organizations will
 Walking away from security and career path exist.
 Taking yourself and your family into an unfamiliar storm of stress and 3. Improving Standard of Living
uncertainty
 Risk of miscalculated opportunity, or your own internal resources as you This means that entrepreneurship can lift up the economic status of an
plunge into a new venture individual.
 Competition
4. Means of Economic Development
1 2
A simple eatery in a rural area and a coffee shop in an urban area both ignite • Climate
economic activity regardless of their business scale.
• Legal system
3. Entrepreneurship introduces new and innovative products and
• Economic and Social conditions
services.
• Market Situations
New products and services are always available in the market because of the
ingenuity of entrepreneurs to seek opportunities and improve on them. COMMON COMPETENCIES IN ENTREPRENEURSHIP
4. Entrepreneurship improves people’s living standards. 1. Decisive – An entrepreneur must be firm in making decisions.
How can you look good if not for the services of your nearby salon or barber 2. Communicator – An entrepreneur must have a convincing power.
shop? How can your day be complete without the food that nearby eatery
cooks? How can you live without the sari-sari store near your house where you 3. Leader – An entrepreneur must have the charisma to be obeyed by his
buy your basic needs? employees.

5. Entrepreneurship disperses the economic power and creates 4. Opportunity seeker – An entrepreneur must have the ability to be the first
equality. to see business chances.

It balances the economy by distributing national income to more businesses 5. Proactive – An entrepreneur can control a situation by making things
rather than to only few monopolies. happen or by preparing for possible future problems.

6. Entrepreneurship controls the local wealth and balances regional 6. Risk Taker – An entrepreneur has the courage to pursue business ideas.
development.
7. Innovative – The entrepreneur has big business ideas and he does not stop
It makes sure local resources are used properly and that every area has an improving and thinking of new worthwhile ideas for his business.
appropriate allocation of resources.
CORE COMPETENCIES IN ENTREPRENEURSHIP
7. Entrepreneurship reduces social conflicts and political unrest.
1. Economic and Dynamic Activity
Imagine if there are no or only few sari-saris or super market stores in your
Entrepreneurship is an economic activity because it involves the creation
area. All of you will then fight for the food supplies because the store cannot
and operation of an enterprise with a view to creating value or wealth by
supply all your needs.
ensuring optimum utilization of limited resources.
8. Entrepreneurship elicits economic independence and capital
2. Innovative
formation.
The entrepreneur constantly looks for new ideas, thus he needs to be
A country with more entrepreneurs is highly likely to become financially
creative.
independent and will less likely need the help of other countries. This also
applies to families, barangays, and cities. It creates wealth instead of borrowing 3. Profit Potential
wealth.
The entrepreneur can be compensated by his profit coming from the
COMMON SMALL BUSINESSES IN THE PHILIPPINES operation.

7 4
4. Risk bearing
The entrepreneur needs to gamble but wise enough to offset the risk.
TYPES OF ENTREPRENEURS
1. Innovative Entrepreneurs
They are those who always make new things by thinking of new ideas.
They have the ability to think newer, better and more economical ideas.
2. Imitating Entrepreneurs
They are those who don’t create new things but only follow the ideas of
other entrepreneurs.
3. Fabian Entrepreneurs
They are skeptical about changes to be made in the organization. They
don’t initiate but follow only after they are satisfied.
4. Drone Entrepreneurs
They are those who live on the labor of others. They are die-hard
conservatives even ready to suffer the loss of business.
5. Social Entrepreneurs
They are those who initiate changes and drive social innovation and
transformation in the various fields such as education, health, human rights,
environment and enterprise development
CAREER OPPORTUNITIES OF ENTREPRENEURSHIP
1. Business Consultant
With the expertise of in the field of entrepreneurship, he can be a very good
source of advices to other entrepreneurs and would be business men.
2. Teacher
A graduate of an entrepreneurship can use his knowledge in teaching.
3. Researcher
The entrepreneur can be employed as a researcher by an enterprise.
5 6
4. Salesman
The entrepreneurship graduate can apply as a salesman.
5. Business Reporter
The entrepreneur being expert in the field, can be employed as a business
reporter.
CHAPTER 2
UNLOCKING DIFFICULTIES
1. Monopolies – The exclusive possession or control of the supply of or trade
in a commodity.
2. Ingenuity – The quality of being clever, original, and inventive.
3. Political unrest – Is defined as the sum of riots, general strikes and anti-
government demonstrations.
4. Capital formation – Is a concept used in macroeconomics, national
accounts and financial economics. Occasionally it is also used in corporate
accounts. It can be defined in three ways:
 It is a specific statistical concept, also known as net investment, used in
national accounts statistics, econometrics and macroeconomics. In that sense,
it refers to a measure of the net additions to the (physical) capital stock of a
country (or an economic sector) in an accounting interval, or, a measure of the
amount by which the total physical capital stock increased during an accounting
period. To arrive at this measure, standard valuation principles are used.
SOCIETAL AND ECONOMIC BENEFIT OF
ENTREPRENEURSHIP
1. Entrepreneurship produces more jobs that equate to an increase
in national income.
Millions of unemployed people will have the opportunities to have a decent
occupation. Small businesses produce jobs and create wealth.
2. Entrepreneurship amplifies economic activities of different
sectors of society.
They may also be referred to as current or repeat customers. 1. Sari-sari store
2. PROSPECTS 2. Rice retailing
People who have not yet purchased your product but are considering 3. Food cart business
it prospect is a potential client, someone who is in the market for your
4. Printing business
product and has the resources needed to buy it but has not purchased it yet.
Once the prospect buys the product, which is always the end goal, they become 5. Buy-and-sell business
a customer.
6. Street food business
3. TARGET MARKET USERS
7. Flea market or tiangge business
People in your target market who are not currently your target customers
are those who are most likely to buy from you. 8. Online selling business

Here are some questions to get you started: 9. Cellphone loading business

 Are your target customers male or female? 10.Laundry and dry-cleaning business

 How old are they? 11.Hair styling and make up business

 Where do they live? Is geography a limiting factor for any reason? 12. Spa, gym, and nail care business

 What do they do for a living? 13. Video and Photography business

 How much money do they make? This is most significant if you're selling 14. Tutorial business
relatively expensive or luxury items. Most people can afford a carob bar. You 15. Baking business
can't say the same of custom murals.
16. Website development and design/blogging
 What other aspects of their lives matter? If you're launching a roof-tiling
service, your target customers probably own their homes. 17. Direct selling business

HOW TO EVALUATE MARKET PROBLEMS 18. Car wash and car care business

1. Is the market problem urgent? 19. Bar, café, and restaurant

2. Is the market problem pervasive? 20. Water station and LPG

3. Will your buyers pay to have this problem solved? FRANCHISE OR STARTUP BUSINESS
Pervasive – Spreading widely throughout an area or a group of people • Bakeries, bakeshops, bread products

THE ENTREPRENEURIAL PROCESS • Bars, cafes, coffee shop

• Beverage and confectionery

11 8
• Car care Ex. Turon
• Clothing and accessories Market Need – A study of need and want of the buyer/customer
• Convenience stores Need – Something that is necessary
• Services (personal and business) Want – Something that is a desire to posses
• Water stations THE MARKET PROBLEM
• Drug stores and pharmacies MARKET PROBLEM: EXAMPLE
• Fast food establishments and restaurants If you had a gardening tools business, you would interview gardeners to identify
problems that occur on the job. One problem could be that paper yard bags do
• Food and snack carts
not stay open while people are weeding.
• Gas stations/ petroleum products
While your interviewees might say. “I need a better paper bag,” the bag not
• General merchandise and retail staying open is the market problem. You might choose to solve this problem in a
number of ways.
• Health and wellness (salon, spa, massages, gym)
DEFINITION
• Schools
Are the challenges, frustrations, and unmet needs of your market.
OTHER ADDITIONAL BUSINESS OPPORTUNITIES
Are your target market’s stated or silent problems.
• Dealerships
This could refer to existing inefficiencies, awkward workflows or non-optimal
• Direct Selling solutions.
• Distributorship STATED NEEDS VS SILENT NEEDS
Chapter 3
Stated Needs – Are explicit statement from your market that declare “I want a
THE MARKET product to do X”. Stated needs are important, they are not as powerful as silent
needs.
Market – Is a place where two or more people can gather to facilitate
the trade of goods or services. Silent Needs – Are problems with undefined solutions.

– Total of all the buyers and sellers in the area under a consideration To deliver products that solve your target customer’s problems, you identify
first market problems. These maybe stated directly as customers’ needs or
– Customer/competitors implied indirectly.
Buyer/seller YOUR MARKET CONSIST OF:
Area – Country, province, municipality, city, barangay, sitio/barrio 1. EXISTING CUSTOMERS
Consideration – Study/Pinag-aaralan People who have already purchased your product
9 10
The Entrepreneurial Process – Is a step-by-step procedure in establishing
any kind of business that an entrepreneur has to undergo. It is composed of 4
aspects:
1. OPPORTUNITY SPOTTING AND ASSESSMENT
- This is the beginning of the process and is considered the most
difficult. Entrepreneurs at this point take note of interesting trends in
their environment. Consumers are reliable sources of opportunity
information because market needs originate from them.
2. DEVELOPING A BUSINESS PLAN
- Entrepreneurs should formulate a business plan when they have
already spotted and assessed the opportunities for a market. A
business plan is a comprehensive paper that details the marketing,
operational, human resource, financial, strategic direction, and tactics of the
business. The business plan will be the core guide and direction of the
entrepreneur in calculating the resources needed, assessing how to
obtain these resources efficiently, and running the business
sustainably.
3. DETERMINING THE CAPITAL NEEDED
- To calculate the resources needed to establish the business and
compare this against the entrepreneur’s current resources.
4. RUNNING THE BUSINESS
- The part where the entrepreneur should use the resources allocated for
the new venture.

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