KEY CONCEPTS AND

COMMON COMPETENCIES

“Opportunity comes from one person’s idea that influences

others to take action.”

QUARTER 1:
MODULE 1- LESSON 2
Evolution of the field of entrepreneurship has been
formulated by scholars based on theories that are rooted in
economics, psychology, sociology, anthropology and
management.

ENTREPRENEURSHIP EVOLUTION
ECONOMIST’S POINT OF
VIEW
Someone WHO BRING resources, labor materials and
assets into combinations that make their value greater
than before

Someone who INTRODUCES change, innovations and a

new order.
PSYCHOLOGIST’S POINT OF VIEW
PERSON WHO IS DRIVEN BY CERTAIN FORCES SUCH AS THE NEED
TO OBTAIN OR ATTAIN SOMETHING, TO EXPERIMENT, TO
ACCOMPLISH OR PERHAPS TO ESCAPE THE AUTHORITY OF OTHERS

MANAGEMENT PERSPECTIVE
SOMEONE WHO IDENTIFIES OPPORTUNITIES, PLANS, MOBILIZES
RESOURCES , MANAGES AND ASSUMES THE RISK OF A BUSINESS
TO HAVE A POSITIVE IMPACT ON SOCIETY.
 CONCEPT OF ENTREPRENEURSHIP

Three key Concepts of Entrepreneurship

1. Entrepreneurship
2. Enterprise
3. Entrepreneur
 PROCESS OF INVENTING, INNOVATING, AND
Entrepreneurship CONCEPT OF ENTREPRENEURSHIP
CREATING NEW IDEAS AND TURNING THEM INTO
ACTION WITH A PURPOSE OF MAKING WEALTH,
GIVE OPPORTUNITIES AND SATISFY THE NEEDS
AND WANTS OF THE CONSUMERS.

  IS A DYNAMIC, SOCIAL PROCESS WHERE INDIVIDU
ALS, ALONE OR IN 
COLLABORATION IDENTIFY FINANCIAL OPPORTUN
ITIES AND ACT UPON THEM BY ESTABLISHING 
NEW ENTERPRISES. 
THE PROCESS OF IDENTIFYING BUSINESS OPPORTU
NITIES, ALLOCATING RESOURCES, AND 
TAKING RISKS TO PRODUCE GOODS AND SERVICES 
OF VALUE, THROUGH CREATIVE AND 
INNOVATIVE PROCESSES, TO SATISFY UNMET CONS
UMER DEMANDS.

 Process of giving and receiving goods and services in to

survive. exchange of money or other valuable things. In early
century Entrepreneurship was used by the people in order
survive.
 OTHER DEFINITION OF ENTREPRENEURSHIP
“ENTREPRENEURSHIP IS THE PURPOSEFUL ACTIVITY OF AN INDIVIDUAL OR A
GROUP OF ASSOCIATED INDIVIDUALS, UNDERTAKEN TO INITIATE, MAINTAIN OR
AGGRANDIZE PROFIT BY PRODUCTION OR DISTRIBUTION OF ECONOMIC GOODS
AND SERVICES” - A. H. COLE
“ENTREPRENEURSHIP IS BASED ON PURPOSEFUL AND SYSTEMATIC INNOVATION. IT
INCLUDED NOT ONLY THE INDEPENDENT BUSINESSMAN BUT ALSO COMPANY
DIRECTORS AND MANAGERS WHO ACTUALLY CARRY OUT INNOVATIVE
FUNCTIONS.” - JOSEPH A. SCHUMPETER
“ENTREPRENEURSHIP IS THE PROCESS BY WHICH INDIVIDUALS PURSUE
OPPORTUNITIES WITHOUT REGARD TO RESOURCES THEY CURRENTLY CONTROL.” -
STEVENSON & JARILLO
“ENTREPRENEURSHIP IS THE ART OF TURNING AN IDEA INTO A BUSINESS.” - FRED
WILSO
Concept of Entrepreneurship

Enterprise
There are two meanings of the word “Enterprise”

a. Enterprise is another term used to address a business. It

is the product (goods or services) one is offering for
sale.

b. It is also used to describe the act of someone who takes

the initiative by taking risks by putting-up new product,
investments and running a business
Concept of Entrepreneurship

Entrepreneur
the person who does the initiative and risks. Entrepreneur is someone who
create the idea and make an enterprise
“Entrepreneurs are people who have the abilities to see and evaluate business
opportunities , together with the necessary resources to take advantage of them, and
to ensure appropriate action to ensure success.” –
International Labour Organization

“An entrepreneur is a person who starts a new venture, taking the initiative and
risk associated with it and does so by crating something new to provide value to
customers.”
David Holt
 Entrepreneur
Karl Vesper
as economist- is one who brings resources, labor, materials and other assets into
combinations that makes their value greater than before and who introduce change,
innovation and a new order.

as psychologist- refer to such a personas typically driven by certain forces, need to

obtain or attain something.

as Businessman- appears as aggressive competition whereas to another

businessman,
Professor Nellson of university of Illinois
defined entrepreneur as a person who can look at environment,
identify opportunities to improve the environment.

Cantillon Richard (1734)

as one who bears uncertainly, buys labor and materials and sell
products at uncertain prices.
is one who takes risks and makes innovation on the factors of
production
non-fixed income earners.
Joseph Schumpeter
is an innovator.

Peter Drucker(1964)
is an innovator always search for change, responds to it and exploit it as
an opportunity.

Jean Baptiste Say(1803)

explain that an entrepreneur is one who shifts economic recourses from an
area of lower productivity to an area of higher productivity and greater
yield.

Kilby(1971) innovator
 COMMON COMPETENCIES

“Opportunity comes from one person’s idea that influences

others to take action.”

QUARTER 1:
MODULE 1- LESSON 2
Are Successful Entrepreneurs

Born Or Made? 
 WHAT IS ENTREPRENEURIAL COMPETENCIES?

The sum total of the personality, skills and knowledge that the
entrepreneur possesses which are necessary to effectively perform their
functions and responsibilities.

 Entrepreneurial competencies facilitate opportunity recognition, help

adapt rapidly to changes, enhances business performance, strengthen the
firm‟s competitive position and stir the achievement of organizational
success.
 ENTREPRENEURIAL
COMPETENCIES
Entrepreneurial competencies facilitate opportunity recognition, help adapt
rapidly to changes, enhances business performance, strengthen the firm‟s
competitive position and stir the achievement of organizational success.

Competence is an underlying personal characteristic which leads

to superior performance. It is a combination of knowledge, skills,
attitudes, and motives
 Three levels of competencies, which all entrepreneurs need:

1. Personal competencies – These are your abilities to ground yourself so that you are
secure and self-assured in whatever situation you may find yourself.

2. Interpersonal competencies – These are your ability to lead, influence,

communicate, supervise, negotiate, and control people at all levels. It is the ability to
get along with people and motivate people to perform jobs. Entrepreneurs must
effectively manage people

3. Business competencies – These are set of particular abilities and knowledge that sets
a company apart from its competitors (yourbusiness.azcentral.com). It also refers to
the key characteristics that successful entrepreneurs should have in order to be
successful
 COMMON
COMPETENCIES
 Common Traits of Entrepreneurs
1. Proactive
 Entrepreneurs are reactive rather than passive.
 They ensure that proper research is done, the risk factors are
assessed, and plans are executed on a timely and most efficient way.
2. Agents of Change
 They are innovation champions.
 They see opportunities in hopeless and complex situations.
 They don’t settle for mediocrity and the status quo.
3. Risk Takers
Entrepreneurs do not just grab opportunities left and
right; they have to take into consideration the potential
threats that they may encounter.
If they think that there is a big chance of succeeding,
they push through with the venture and don’t let the
opportunity pass.
4. Have a Sharp Eye for Opportunities
They know how to assess the net cause and effect of an
opportunity and decide intelligently if a venture should be
considered or not.
5. Sociable
Soft skills are one of the most important competencies of
entrepreneurs as these establish the relationship with the
most important assets of the company – its people and its
customers.
Relationship management is the key for employee and
customer relation, which can be achieved by a social
entrepreneur.
4. Networkers
A networker knows the key people to connect with.
 7. Decisive
 They do not settle for gray areas or unclear solutions.
 They do not leave an issue unsolved without
disposition.
 They make sure that all aspects of their business have
clear objectives and strategies.
 They base their decisions on scientific calculations
backed up by their experience and technical knowledge.
7. Balanced
The minds of entrepreneurs should have a balance
between the analytical and the creative side.
Their brains are always playing with “unique ideas”
that no one has ever thought of yet.
8. Innovative
They do not stop improving and thinking of new and
worthwhile ideas for their business.
 CORE COMPETENCIES

“Opportunity comes from one person’s idea that influences

others to take action.”

QUARTER 1: LESSON 2
 CORE TRAITS OF
ENTREPRENEURS
1. LEADERS
 To be successful leaders, they must be a source of inspiration for their
employees.
 They must be very humble, approachable, friendly, and also know how
to listen to people’s concerns.
 Leaders, act on their responsibilities that were given to them.
 They use their strengths and limitations to make the best of a situation.
 They must also be decisive and know how to own up to their decisions.
 They know how to unite the team and bring out the best in every
employee.
 COMMUNICATORS
Entrepreneurs know how to use all forms of
communication to effectively share ideas and address
certain concerns with their customers or employees.
Communication channels between entrepreneurs and their
employees or customers should always be open to ensure
the smooth flow of operations in their business.
3. SPECIALISTS
Entrepreneurs are tactical and are
very keen with details.
They understand the totality and
specificity of their business.
They enjoy being in action instead of
being behind the scenes.
4. Problem Solvers
 Entrepreneurs possess critical thinking skills and look at problems as
challenges or puzzles that they need to solve.
 They know how to handle issues in any area of the business, be it finance,
operations, or marketing.
 They are able to solve problems by immersing themselves in day-to-day
activities, knowing what is happening in and out of their business.
 They should also be aware of their employee’s personalities; they must
know how and when to use them to help solve the problems.
 They must have faith that every problem has a solution no matter how
hard it is.
 They must also be courageous and know how to face the consequences of
their decisions.