Module 1 Final

ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT OF THE PHILIPPINES
MODULE 1: Overview of Entrepreneurship
Module 1:
Overview of
Entrepreneurship
What is Entrepreneurship?
LEARNING OBJECTIVES
At the end of this module, you will be able to;
1. Discuss the relevance of entrepreneurship in general, including its

economic importance;
2. Define who is an entrepreneur ;
3. Explain the key concepts of common and core competencies in
entrepreneurship ;
4. Delineate clearly between entrepreneurship and employment ; and
5. Explore opportunities for entrepreneurship as a career.
Before you prepare a business plan, you need to understand first the macro
OVERVIEW view of entrepreneurship.
This module will teach you the basics of the entrepreneurship beginning
with role it plays in society and economy. You will also learn key concepts of
common and core competencies which are required skills to become a
successful entrepreneur.
You will be able to understand the pros and cons of being an entrepreneur
as compared to being an employee. A total persona of entrepreneur will be
inculcated to you, including the characteristics, behavior, activities, values,
and mindset.
Lastly, you will be exposed to the various exciting career opportunities in

line with being entrepreneur.
Who is an
Entrepreneur?
Who is an
Entrepreneur?
The word “entrepreneur” has a French origin and was
coined from the words entre, which means
“between,” and prendre, which means “to take.”
entreprendre is usually translated as "undertaker" or

"adventurer."
Who is an
Entrepreneur?
“A person who starts a business and is willing to risk loss in
order to make money.”
An entrepreneur is an individual who creates a new

business, bearing most of the risks and enjoying most of
the rewards. The entrepreneur is commonly seen as an
innovator, a source of new ideas, goods, services, and
business/or procedures.
What is
Entrepreneurship?
What is
Entrepreneurship?
Entrepreneurship is a proactive process of developing a
business venture to make a profit.
• seeking opportunities for a market

• establishing and operating a business out of the opportunity
• assessing its risks and rewards through close monitoring of
the operations.
“An entrepreneur is
successful if the business
that he or she envisioned
has materialized into a
thriving industry with
regular customer and
financial gain.”
Societal and
Economic Benefits of
Entrepreneurship
Societal and Economic benefits

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 wealth.
2 Entrepreneurship amplifies economic activities of different sectors

of society.
A simple eatery in a rural area and a coffee shop in an urban area
both ignite economic activity regardless of their business scale.

of Entrepreneurship
3 Entrepreneurship introduces new and innovative products and services.
New products and services are always available in the market because
of the ingenuity of entrepreneurs to seek opportunities and improve on
them.
4 Entrepreneurship improves people’s living standards.

How can you look good if not for the services of your nearby salon or
barber shop? How can your day be complete without the food that a
nearby eatery cooks? How can you live without the sari-sari store near
your house where you buy your basic needs?

of Entrepreneurship
5 Entrepreneurship disperses the economic power and creates equality.
It balances the economy by distributing national income to more

businesses rather than to only few monopolies.
6 Entrepreneurship controls the local wealth and balances regional

development.
It makes sure local resources are used properly and that every
area has an appropriate allocation of resources.

of Entrepreneurship
7 Entrepreneurship reduces social conflicts and political unrest.

Imagine if there are no or only few sari-sari or supermarket stores in
your area. All of you will then fight for the good supplies because the
store cannot supply all your needs.
8 Entrepreneurship elicits economic independence and capital information.

A country with more entrepreneurs is highly likely to become financially
independent and will less likely need the help of other countries. This also
applies to family, barangays, and cities. Entrepreneurship creates wealth
instead of barrowing wealth.
“An Entrepreneur is a
unique individual who has
the innate ability and
extraordinary dedication
to establish and manage a
business, acknowledging
all the risks and reaping
its rewards.”
“An entrepreneur’s
natural talent is being
perceptive for
opportunities in his or her
surroundings that normal
people don’t give
importance to or often
neglect.”
Five Levels of
Entrepreneurial
Development
The definition of an entrepreneur only provides you with a
general description or shows you want is expected from an
entrepreneur. However, entrepreneurship is composed of
varying degrees or levels of intensity. According to action coach,
there are five levels of entrepreneurial development.
1. The self-employed
Self-employed persons are, simply put, not
comfortable with routines of a desk job. They do not
want to conform to a fixed working schedule. They
want to do things in their own way and start to feel
agitated when controlled by the powers-that-be.
2. The manager
Entrepreneurs feel the need to step up and ask for some help
from the people around them. They delegate and hire
potential employees to do the work. However, they may
have the tendency to get more people who do not know the
exact needs and requirements of the job, because
entrepreneurs think that the battle is in the scale and not the
profitability.
3. The leader
Entrepreneurs in this level already enjoy seeing their
people flourish, stepping up and producing great results
with minimal supervision. Unlike before where they are in
charge of virtually everything, they can now sleep
peacefully at night and have more freedom and time for
themselves. They already recognized key leaders in their
organizations.
4. The investor
Investors look for more opportunities for their business to
grow. They may either purchase one or two business that can
potentially add value to the company, or sell their established
business (as a franchise) to potential entrepreneurs. They will
delegate a suitable manager for such operations and will act
as directors. When this becomes successful, they will now
become true entrepreneurs.
5. The true entrepreneur

True entrepreneurs, based on their experience, now aim
for quality and excellence in their work. They have fully
learned, and to continue practice, a four-step process of
thinking; starting with idealization, visualization,
verbalization, and materialization, entrepreneurs start to
create plans to make the dream a reality.
Types of
Entrepreneur
The world of entrepreneurship these days has already evolved, and

new terms are coined to suit an entrepreneur’s field or expertise.
1 A technopreneur is an entrepreneur who puts technology at the

core of his or her business model.
A social entrepreneur is one who takes advantage of the country’s

2 social problems and turn them to profitable institutions with the
intention of helping the disadvantaged community rather than making
a profit.
The world of entrepreneurship these days has already evolved, and

new terms are coined to suit an entrepreneur’s field or expertise.
An intrapreneur is an entrepreneur on a large company

corporation who is tasked to think, establish, and run a new big
3
idea or project. Intrapreneurs are usually the product managers or
the business development managers of a company.
An extrapreneur is an entrepreneur who hops from one company to

4 another to act as the innovation champion, providing creative and
efficient solutions.
Common and Core

Competencies in
Entrepreneurship
A set of entrepreneurial concepts and principles,
entrepreneurial personality qualities, and entrepreneurial
capabilities that provide and become the entrepreneur's
ultimate source of competitive advantage.
Here are the common traits that entrepreneurs

should always have.
1. Proactive
Being proactive is following through on carefully

planned actions or always looking ahead at future activities,
initiatives, and events and anticipating demands,
challenges, and probable consequences in order to achieve
the most important corporate objectives. It means
concentrating on the necessary rather than the urgent.
2. Agents of changed
Is a firm individual who promotes and supports a

new way of doing things, whether it's the usage of a new
procedure, the adoption of a new management structure, or
the transfer of an old business model to a new one.
3. Risk takers
Someone who is willing to risk everything in the
expectation of success or accepts a higher risk of loss in
decisions and accepts uncertainty
4. Have a sharp eye for

opportunities
Entrepreneurs are gifted in this area. Spotting an

opportunity based solely on macrolevel data. They
recognize how to Assess the opportunity's net cause and
effect and make an informed decision about whether or
not to pursue it.
5. Sociable
Social entrepreneurship is the process of identifying
opportunities to create social value and leveraging and pursuing
resources. They use the best ideas from both the business and non-
profit worlds to develop strategies that maximize social impact.
6. Networkers
Networking in entrepreneurship refers to creating and maintaining
social contacts that can help businesses meet their needs. Nowadays,
one of the most important things that entrepreneurs have to think
about a lot is to strengthen their networks.
7. Decisive
Decisiveness is one of the most important qualities for an
entrepreneur. Being decisive means being able to make firm,
relatively quick decisions, rather than sitting indefinitely or changing
your mind after making a decision.
8. Balanced
In these times of trials, it's more important than ever to make
informed decisions about your business to increase your chances of
survival and take it to the next level. Therefore, it is essential to
maintain a balanced mind when it comes to business.
9. Innovative
The spirit of innovation can be played with an idea
that will always look for new possibilities and opportunities.
Ideas come from being open to the surroundings and
thinking about what's happening and what's not happening
around them. It does not allow restrictions or ideas that will
never stop it. You can think from various perspectives.
Here are the core traits entrepreneurs should

develop in managing in running the business:
1. Leaders
Entrepreneurial leadership involves organizing and
motivating groups of people to achieve common goals through
innovation, risk optimization, opportunity utilization, and
management of a dynamic organizational environment.
2. Communicators
Communication is the way people interact.

Entrepreneurs are always looking to improve their
communication skills, as they not only communicate and
articulate their ideas but also help them do a better job on an
ongoing basis with their employees, team members, and
customers.
3. Specialists
Business people are master in their chosen commerce.

They are tactical and are exceptionally sharp with subtle
elements. When inquired almost the specifics of their products
or benefit, they can effortlessly reply without intensely
depending on their individuals. They get it the totality and
specificity of their commerce and they appreciate being in
activity rather than being behind the scenes.
4. Problem Solvers
Entrepreneurs are able to think critically and have a
professional appearance. They see difficulties as challenges or
puzzles to solve. They know how to deal with any situation.
Whether it's financial services, production, or advertising,
challenges can arise in any part of the firm. They pay attention
also to the misery of their employees on some issues regarding
their units and make solutions that are strategic.
“Don’t start a business. Find

a problem, solve a problem,
The business comes second.”
— Robert Herjavec
Entrepreneurship
or Employment?
Income
ENTREPRENEUR
- Income generated passively even when the entrepreneur is resting.

- Opportunity income unlimited, depending on the success of the
business.
- Income only earned when the business is successful
EMPLOYEE
- Income generated actively (i.e., on working hours only); no work= no
pay
- Income usually fixed per month and increases every year depending
on the employer and employee’s performance.
- Income earned whether the business is successful or unsuccessful.
Hiring and Firing, Organizational

Setup, and Major Key Result Areas
ENTREPRENEUR
- Provides job
- Fully responsible for serving customers, making the business

profitable/sustainable, and providing employee satisfaction.
- The power to disengage non performing employees applying the due process
policy of the disengaging personnel.
- Can venture into expansion of business such as franchising and buying other
similar businesses.
EMPLOYEE
- Seeks for a job
- The goal of satisfying only the employer or the direct supervisor.
- Fully dependent on the employer’s performance; is at risk of losing his/her

job if the company does not perform well; may find it difficult to just leave
their below par employer if this only source of income .
- Can only work for the current employer exclusively.

Daily Tasks
ENTREPRENEUR
- Performs all necessary variable tasks to establish and manage a
startup business, which usually takes most of the entrepreneur’s
time; spend more hours on work than a regular employee and
sometimes gets no sleep.
- Prepares policies, procedures, and memoranda for the business.
EMPLOYEE
- Has routine tasks and works on regular or normal hours.
- Follow policies, procedures, and memoranda from the employer.

Leisure Time and Vacations

ENTREPRENEUR
- Has a flexible schedule and can take unlimited number of vacation days
(applicable only if the business has stabilized already)
EMPLOYEE
- Has unlimited number of vacation days imposed by the employer
Taxation
ENTREPRENEUR
- Taxed on the net income ; can claim taxable income deductions for
allowable expenses incurred by the business
EMPLOYEE
- Taxed on the gross income ; cannot use expenses incurred related to
the job such as food and transportation expenses to claim for deductions
from taxable income
Comfort Level at Work

ENTREPRENEUR
- Is comfortable in doing multiple and challenging task and takes

accountability with the risks and profits of the business; does not
want to be confined in a box; thinks outside the box or sometimes
thinks there is no box.
EMPLOYEE
- May be comfortable with routines and minimal risks;
- May also be comfortable in working for the company itself
Careers in
Entrepreneurship
Entrepreneurship consists of vast career options
depending on the passion and field of interest
of the entrepreneur.
“When you love what

you do, it’s as if you
are not working”
1 SARI-SARI STORE
- Sari-sari store or convenience store consist of affordable basic

products to nearby communities.
- A sari-sari store is one of the easiest businesses to set up due
to the minimal capital required and because it can be
managed at home, where the business owner live.
2 RICE RETAILING
- According to the infographic presented by Rappler (2012),

Filipinos spend 20% or 20 centavos per every peso for rice. An
average Filipino consumed an average of 92 kilograms (kg) of
rice from the 1980s to 1990s, 111 kg from 2008 to 2009, and
119 kg from 2009 to 2010.
- Rice is the staple food of Filipinos and other Asian countries,
rice retailing business is very common in the country.
3 FOOD CART BUSINESS
-This business is also very popular in the Philippines.
-You don't need a lot of employees.
-They are usually located inside or outside the malls, schools,

parks, train stations, and offices.
-Popular food items sold in food carts are dumplings (siomai),

boiled fertilized duck eggs
4 PRINTING BUSINESS
- This business is also lucrative (Profitable or a great

deal) in the Philippines because the demand is very
high.
- Usually situated near schools and offices.

5 BUY AND SELL BUSINESS
- This business is one of the emerging businesses in the

Philippines, and it is not just done traditionally in brick-and-
mortar stores but also over the Internet.
- The influx of buy-and-sell web site has changed the

behavior of how Filipinos exchange goods in the most
efficient and practical way.
- Everyone can technically be a seller even without an actual

business.
6 STREET FOOD BUSINESS
- Just like the food cart business, this kind of business is

widespread in the Philippines.
- It is usually available in areas near school, offices,

terminals, busy street or in the public market.
- Majority of the street food business owners are selling

grilled food items such as barbecue.
7 FLEA MARKET BUSINESS OR TIANGGE
- This type of business, entrepreneurs set up a small space

and sell any type of goods in a palengke setup that is
normally in an open space.
- Products being sold range from clothes, to foods, items, to

souvenirs, and to household effects.
- Some flea Market are selling secondhand goods.

8 ONLINE SELLING BUSINESS
- This business deals with adding the Internet as marketing

and transaction channel for selling.
- In online selling business they can sell physical product non-

physical goods, such as services, and digital product.
- The Internet has the revolutionized the way Filipinos

transact business.
9 CELLPHONE LOADING BUSINESS
- Cellphone loading business is also one of the most cheapest

business that you can start.
- More than 95% of Filipinos are prepaid mobile phone users,

according to an article published by the Philippine daily
inquirer (2012). Moreover, 80% of Filipinos households have
access to mobile phones.
- Some entrepreneurs link the cellphone loading business to

their existing businesses such as the sari-sari store, food cart,
or online business.
10 LAUNDRY AND DRY CLEANING BUSINESS
- This type of business is often located at central business

districts and areas with several condominiums and
townhouses.
- One thing common about the residents of these places is

that they do not have enough time to wash and dry they
clothes and just give the job to the laundry and dry
cleaning business.
- The business owner should follow hygiene requirements

before starting this business.
11 HAIR STYLING AND MAKE UP BUSINESS
- One of the successful businesses in the Philippines is the

hairstyling business.
- Aside from the core service of giving haircuts, this business

also offers auxiliary services such as hair treatments (perm,
straightening, highlighting), massage, and nail styling.
- Filipinos are generally conscious about proper grooming and

hygiene, so that’s why this business is profitable.
12 SPA, GYM, AND NAIL CARE BUSINESS
- One of the ways Filipinos cope with stress is by going to a

spa. This business offers a range of massage treatments
such as facial and body scrubs.
13 VIDEO AND PHOTOGRAPHY BUSINESS
- This business requires talent in capturing precious

moments of celebrators in weddings, birthdays,
anniversaries, graduation and other important events.
14 TUTORIAL BUSINESS
- A tutorial business is composed of experts in a particular

field who transfer their knowledge to another for a fee. In
the Philippines, the tutorial business has become an
important aid in reinforcing and enriching the students’
basic education knowledge.
15 BAKING BUSINESS
- A lot of bakeries are present in almost all

neighborhoods in the Philippines because bread is the
second staple food of Filipinos. Pandesal is the most
common bread being offered by this business.
16 WEB SITE DEVELOPMENT AND DESIGN/BLOGGING
- The popularity of the Internet brought so many

opportunities to Internet-savvy budding entrepreneurs.
- A blog may become famous or successful if the site has a

number of followers or readers. Some people may earn
cash by allowing companies to place ads in their blogs.
17 DIRECT SELLING BUSINESS
- This business is also very common in the Philippines. It

is face-to-face selling of products by a sales agent.
- The products include fashion accessories, health and

wellness items, clothing, food supplements, and
homecare items.
18 CAR WASH AND CAR CARE BUSINESS
- You often see this business in large cities of the

proliferation of cars. In fact, the demand for car care
increases every year.
19 BAR, CAFÈ, RESTAURANT
- The number of foodies (food enthusiasts) has increased

because the Filipino plate has become globalized.
- Filipino customers’ demand for variety and quality

taste has evolved as well; thus, these businesses are
continuously thriving.
20 WATER STATION AND LPG (LIQUEFIED PETROLEUM GAS)

STATION
- These businesses can never go wrong as they continuously

serve households, supplying them with their purified water
and gas needs.
THANK YOU!

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ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT OF THE PHILIPPINES

MODULE 1: Overview of Entrepreneurship

At the end of this module, you will be able to;

1. Discuss the relevance of entrepreneurship in general, including its

Lastly, you will be exposed to the various exciting career opportunities in

entreprendre is usually translated as "undertaker" or

An entrepreneur is an individual who creates a new

• seeking opportunities for a market

Societal and Economic benefits

1 Entrepreneurship produces more jobs that equate to an increase

2 Entrepreneurship amplifies economic activities of different sectors

Societal and Economic benefits

4 Entrepreneurship improves people’s living standards.

Societal and Economic benefits

It balances the economy by distributing national income to more

6 Entrepreneurship controls the local wealth and balances regional

Societal and Economic benefits

7 Entrepreneurship reduces social conflicts and political unrest.

8 Entrepreneurship elicits economic independence and capital information.

5. The true entrepreneur

The world of entrepreneurship these days has already evolved, and

1 A technopreneur is an entrepreneur who puts technology at the

A social entrepreneur is one who takes advantage of the country’s

The world of entrepreneurship these days has already evolved, and

An intrapreneur is an entrepreneur on a large company

An extrapreneur is an entrepreneur who hops from one company to

Common and Core

Here are the common traits that entrepreneurs

Being proactive is following through on carefully

Is a firm individual who promotes and supports a

4. Have a sharp eye for

Entrepreneurs are gifted in this area. Spotting an

Here are the core traits entrepreneurs should

Communication is the way people interact.

Business people are master in their chosen commerce.

“Don’t start a business. Find

- Income generated passively even when the entrepreneur is resting.

Hiring and Firing, Organizational

- Fully responsible for serving customers, making the business

- The goal of satisfying only the employer or the direct supervisor.

- Fully dependent on the employer’s performance; is at risk of losing his/her

- Can only work for the current employer exclusively.

- Prepares policies, procedures, and memoranda for the business.

- Follow policies, procedures, and memoranda from the employer.

Leisure Time and Vacations

Comfort Level at Work

- Is comfortable in doing multiple and challenging task and takes

“When you love what

- Sari-sari store or convenience store consist of affordable basic

- According to the infographic presented by Rappler (2012),

3 FOOD CART BUSINESS

-This business is also very popular in the Philippines.

-You don't need a lot of employees.

-They are usually located inside or outside the malls, schools,

-Popular food items sold in food carts are dumplings (siomai),

- This business is also lucrative (Profitable or a great

- Usually situated near schools and offices.

5 BUY AND SELL BUSINESS