INTRODUCTION TO

ENTREPRENEURSHIP
Objectives
• Understand the relevance of entrepreneurship
• Understand the concept of entrepreneur and
entrepreneurship
• Identify the factors affecting entrepreneurship
• Explain the core competencies in entrepreneurship
Introduction:
• The outbreak of COVID-19 pandemic led to closure of various
business establishments that resulted to job termination of many
employees. Plenty of workers became unemployed and waited for the
assistance from the government. However, there were also plenty of
people including the terminated employees who were able to look for
their livelihood during the pandemic. Most of these people were able
to sustain their needs because of their entrepreneurial mind.
ENTREPRENEURSHIP
 
Learning the Concepts:

Entrepreneurs
Entrepreneurs are the person who undertake entrepreneurial
activities; recognizes an economic need, thinks of a business
solution, undertake to assemble the required resources, and
assumes the risk of either failing or succeeding.
Entrepreneurs are innovators, willing to take risks and generate new
ideas to create unique and potentially profitable solutions to
modern-day problems.
 
Learning the Concepts:

Entrepreneurship
Entrepreneurship is the process of creating something new, be it a
product or a service, and assuming the risks and rewards.
It also refers to economic activity of a person or an organization who
starts, manages and assumes the risk of business enterprise.
Entrepreneurship ranges in scale from solo projects (even involving
the part-time entrepreneur) to major undertakings that create many
job opportunities (De Guzman, 2018).
Entrepreneurship employs what Schumpeter called the “gale of
creative destruction” to replace wholly or partly inferior innovation
across markets and industries. This destruction simultaneously
creates new products and new business models (De Guzman, 2018).
Relevance of Entrepreneurship to an Organization
1. Development of managerial capabilities
One among the many relevance of entrepreneurship to an organization is that
it helps in identifying and developing managerial capabilities of entrepreneurs.
An entrepreneur studies a problem, identifies its alternatives, compares the
alternatives in terms of cost and benefit implications, and finally chooses the
best alternative (De Guzman, 2018).
Studying a problem, identifying its alternatives, comparing alternative in terms
of cost and benefit implication and choosing the best alternative help in
sharpening the decision-making skills of an entrepreneur. Besides, these
managerial capabilities are used by entrepreneurs in creating new
technologies and products in place of older technologies and products
resulting in higher performance (De Guzman, 2018).
Relevance of Entrepreneurship to an Organization

2. Creation of organizations
• An organization is created when entrepreneurs
assemble and coordinate the human, physical and
financial resources and direct them towards
achievement of goals and objectives through
managerial skills.
Relevance of Entrepreneurship to an Organization

3. Improving standard of living

• The high standard of living is the result of the
enormous effort of entrepreneurs who made a wide
variety of goods and services which are available to
the society that yields to higher employment rate and
new business opportunities.
Relevance of Entrepreneurship to an Organization

4. Means of economic development

• The economic development of a country is evident by high
employment rate, sprouting of various business
establishments as well as improvement of the country’s
infrastructures, facilities and services. These kinds of
development are made possible by entrepreneurs.
Relevance of Entrepreneurship to an Organization

4. Means of economic development

• The economic development of a country is evident by high
employment rate, sprouting of various business
establishments as well as improvement of the country’s
infrastructures, facilities and services. These kinds of
development are made possible by entrepreneurs.
Factors Affecting Entrepreneurship
There are several factors that affects entrepreneurship such as psychological,
economic, social and cultural factors, but those factors can be categorized only
into two factors to wit, environmental and personality factors (De Guzman, 2018).

1. Environmental factors
• These factors relate to the place or conditions in which an entrepreneur has to
work. Factors such as economic and social conditions, political climate, legal
system, and market situations are just few examples of environmental factors
that significantly affect the economic activities of an enterprise.
For example, the tax imposed by the Bureau of Internal Revenue on the online
sellers of commodities affects the production of goods and/or services of an
enterprise.
Factors Affecting Entrepreneurship
2. Personality factors
These are the traits possessed by an entrepreneur:
Drive. An entrepreneur is self-motivated enough to pursue his chosen course
without relenting even in the face of adversity. If he fails in his first attempt, he
makes another attempt.
Critical thinking. An entrepreneur’s job involves decision-making and problem
solving. A man with superior thinking ability can see through the maze of
information (or disinformation) brought before him.
Human relations ability. An entrepreneur possesses high social awareness and
ability to build relationship with others.
Ability to communicate. Communication skill is a very important characteristic that
an entrepreneur must possess in order to succeed. The ability to understand and
to be understood makes it easier for the entrepreneur to transact business.
Technical knowledge. An entrepreneur must have familiarity of the business
venture he is going to undertake.
Factors Affecting Entrepreneurship
Reasonable risk taker. When a person starts a new venture, he has already begun to
assume the risk of business failure. Entrepreneurs enjoy challenges. But they are careful
and calculating. So, they do away from high risk situations, because these might not be
attainable. However, entrepreneurs also avoid low-risk situations because there are no
challenges. A risk situation exists when results are not certain, either it is success or
failure. In view of the risk-taking abilities of entrepreneurs, they make things happen
rather than let them.
Self-confident. Entrepreneurs have strong faith in their abilities. They believe they can be
the best in their field. They do not accept things as they are, because they believe they
can do things better.
Goal setter. An entrepreneur usually has a specific target and because he is persistent to
achieve a certain target, he creates strategies and action plan.
Accountable. An entrepreneur takes full responsibility of whatever will happen to the
enterprise.
Innovative. An entrepreneur always seeks for something new and useful product or
service. He always strives to discover new things or strive to improve existing products or
services.
Factors Affecting Entrepreneurship

3. Biological factor
This factor is something new. The writer of this module decided to
include biological factor since many enterprises had been affected by
the COVID-19 pandemic. This pandemic is a kind of viral respiratory
infection that has no cure yet at the time of this writing.
Various enterprises and commercial establishments stay closed, work
stoppage occurred, and there was a limit in mobility of almost
everyone in the entire world. However, other businesses strive
because of this factor such as the manufacturers of alcohol, personal
protective equipment and face masks. Entrepreneurs of this sort were
able to design an innovative product.
 Practice Activity 3. The Thinker
As an entrepreneur, you should have a new business idea. What
business idea do you have in mind which you think will negatively be
affected by the aforementioned environmental and biological factors?
By using your critical thinking ability, what are you going to do in order
to solve the issue? Write down your answer on the table provided
below.
New Business Idea Action Plan (Solution)
   
   
   
   
   
 
 
Core Competencies in Entrepreneurship
Economic and dynamic activity.
Entrepreneurship is an economic activity because it is concerned in
the creation and operation of an enterprise with a purpose of creating
value or wealth through maximum utilization of scarce resources. This
value creation activity is performed continuously in the midst of
uncertain business environment. Hence, entrepreneurship is regarded
as a dynamic force (De Guzman, 2018).
Core Competencies in Entrepreneurship
Innovation.
Entrepreneurship involves continuous search for new ideas. It
compels an individual to continuously evaluate the existing modes of
business operations so that more efficient and effective systems can be
evolved and adopted. In other words, entrepreneurship is a continuous
effort for synergy to ensure optimization of performance in
organizations (De Guzman, 2018).
Core Competencies in Entrepreneurship

Profit potential
Profit potential is the ability of a product or service to generate
revenue which, after expenses, leads to net income.
Core Competencies in Entrepreneurship

Risk bearing
There are always uncertainties in every business enterprise. An
entrepreneur must be willing to undertake a calculated risk arising from
the creation and implementation of new business ideas. These ideas
are always tentative and could result to either positive or negative
outcome.