LESSON 1 – Competencies required

of an Effective Entrepreneur
PERSONAL ENTREPRENEURIAL
CHARACTERISTICS (PECs) has three
cluster:

1. ACHIEVEMENT CLUSTER
 Opportunity Seeking
- sees and acts on new business
opportunities
 Persistence
- a persistence individual takes repeated
or different actions to overcome obstacles to
his/her goals
- stick to his judgment in the face of
opposition or early lack of success
- makes personal sacrifices
 Commitment to the Work Contract
- should accept full responsibility
- pitch in for others to finish the job
- express concern towards the customer

 Demand for quality and efficiency

- do things that meet existing standards
of excellence
- strive to do things better, faster and
cheaper
 Risk Taking
- take moderate risks
- state a preference for situations that
involve moderate risks

2. PLANNING CLUSTER
 Goal setting
- should always have clear and specific
objective –- a long-term and short term
objective --
 - they are guided by the word SMART
(specific, measurable, attainable, realistic
and time-bound)

Information Seeking
- entrepreneurs do not stop seeking
information for their businesses for
improvement of the company
- information-seeking on clients,
supplies, and competitors
 Systematic Planning & Monitoring
- developing & using logical, step by step
plans, evaluate, monitor progress & switch to
alternative strategies

WAYS THAT ARE USED BY THE ENTREPRENEURS TO

EXERCISE SYSTEMATIC PLANNING & MONITORING
 learn from mistakes
 constantly review performance
 Concentrate on present situations
 go back & review goals
 If still unproductive, accept changes,
but find other means to achieve goals
 Tries to change environment if the
environment is the cause of the low
standard performance
3. POWER CLUSTER
 Self-confidence
- possess a strong believe in their abilities
- express confidence in their own ability
- they believe their business to be
successful and profitable

 Persuasion & Networking

- should use deliberate strategies to influence
others
-use their business & personal contact to
accomplish their objectives
LESSON 2 – Strength & Weaknesses
of an Filipino Entrepreneur
STRENGTH WEAKNESSES
1. Always sets his/her own Sets unrealistic goals
realistic goals
2. Self- reliant Depends on other people for
attainment of goals
3. Focuses on positive Focuses on goals which call to
objectives stop or avoid doing things
4. Periodically reviews Does not keep track in
performances progress
 STRENGTH
5. Learns form own mistakes
6. Accepts changes & uses
them to motivate self
7. Takes care of himself
physically
8. Sticks to schedule
9. Is self-motivated
10. Is action-oriented,
concentrates on what has
already been done or
accomplished
WEAKNESSES
Does not improve on areas
where he/she failed
Is afraid of changes
Is unmindful of physical
appearance
Does not avoid or minimize
interruptions
Depends on outside forces to
be motivated
Concentrates on what is still
to be done
 STRENGTH WEAKNESSES
11. Manages backtracking Keeps on going back & forth
on the same path
12. Finishes work once started Does not complete most
often any given task
13. Reflects on time Is not conscious of time
management regularly wasted
14. Associates with other Does not develop the habit of
entrepreneurs; patterns working well with people
lifestyle, values, & habits after
successful entrepreneurs
LESSON 3 – Assessing Oneself as a
Potential Entrepreneur
FUTURE ENTREPRENEURS MAY BE GUIDED
BY THE FF:CHECKLIST……..
1. Do you enjoy challenging task?
2. Is your academic standing something to be
proud of?
3. Did you receive good grades for your school
behavior?
4. Do you often feel that you can do a better job
than others?
5. Are you active in community affairs?
6. Can you make good decisions?
7. Are you willing to change your
negative habits?
8. Did you have any experience in
selling?
9. Do you have relatives or associates
who are in business?
LESSON 4- Problems Faced By
Entrepreneurs
1. Financial problems
- lifeblood of business is money
- it is a must to have your own money before
staring a business

2. Managerial problems
- lack of management skills of the entrepreneur
- should think well before giving instructions to
avoid poor management
3. Marketing problems
- some of these are problems with competitors,
taxes & advertising costs
4. Over-regulation & taxes
- amount of income for reinvestment is reduced
by corporate income taxes
5. Problems relating to facilities
- production & sales are solved by problems of
power supply, transportation & communication
 Creativity & Innovation in solving
practical problems faced by
Entrepreneurs
 Human mind
- considered as the most outstanding
machine because it creates & innovates
Creativity
- ability to develop an original idea
 Innovation
- introducing a new idea or method in an
already existing product or concept as a way
of enhancing & improving it
The following qualities are possessed by a
creative & innovative entrepreneur:
 results-oriented
 aware of people’s needs
 involve others in decision-making
 risk-taker
 is not satisfied with the usual way of doing
things
 questions & innovates business practices
LESSON 5 – Management as an
important factor in Entrepreneurial
Activity
 MANAGEMENT
- is the process of acquiring & using
human, fiscal & material resources effectively
to produce goods & services needed by people
 FOUR BASIC MANAGERIAL TASKS OF AN
ENTREPRENEUR
 Planning
- goal setting, related decisions about what, who,
when & how
- has short & long- range plans w/c requires decisions
for future action

Organizing
- delegation of work & functions to personnel, units
or departments.
- Each personnel or group has well-defined duties,
functions & accountability
 Directing
- business plan is implemented by the
entrepreneur
- he is the director-monitoring the production of
goods & services
- guides the work activities
- sees to it that standards in the production are
followed
 Controlling
- this is the evaluation aspects of
entrepreneurship
- checking the quality of goods & services
LESSON 6 – Applying management
theories to practical situations
CLASSICAL MANAGEMENT THEORIES
A. Classical Scientific
- innovated by Frederick Winslow Taylor
- it is concerned on how to increase
production efficiency to lower costs, raise profits &
increase workers’ pay --- through increased
production
- Gantt Chart was invented by Henry L. Gantt
- used for programming production &
gave importance to the role of workers
 B. Classical Administration
- proponent of this theory is Henry Layol
- emphasis is more on management principles
than on work methods

 BEHAVIORAL MANAGEMENT THEORY

- Robert Owens states that quality & quantity of
work are affected by conditions workers
- workers’ morale improved resulting in
improved production & reduction of operational cost
after many years
 CONTINGENCY MANAGEMENT THEORY
- solves by analyzing, listing circumstances
prevailing at the time
- identifying available causes of action
-identifying the consequences of each cause of
action
- choosing the bets solution

 QUANTITATIVE MANAGEMENT THEORY

- recommends the use of mathematical
approaches to management problems
 SYSTEM MANAGEMENT THEORY
- emphasizes system as a group of interrelated
parts operating as a whole to achieve desired goals
and to function according to design.