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Entrepreneurship
organization management skills is also counted as the
 Businesses are the backbone of the economy. management capability.
 Entrepreneurs are encouraged by the economy.
2. Creation of Organizations - which means that because of
WHAT IS ENTREPRENEURSHIP? entrepreneurship many organizations will exist.
 It is a proactive process of developing a business
venture to make a profit. It involves seeking  The idea for a new organization takes root in one or
opportunities for a market, establishing and operating a more individuals. The actual creation of the organization
business out of the opportunity, and assessing its risks occurs through the development and transformation of
and rewards through close monitoring of the the original idea, first through design of an
operations. organizational plan based on it and then through
 An entrepreneur is successful if the business that he or implementation of the plan in a new organizational
she envisioned has materialized into thriving industry setting.
with regular customers and financial gain. An
entrepreneur either decides to maintain his or her 3. Improving standard of living - this means that
business or expand. entrepreneurship can lift up the economic status of an
individual.
ENTREPRENEURSHIP AND ECONOMIC DEVELOPMENT
 Economic development is a scheme aimed at improving 4. Means of economic development - this means that not
the living standards of the nation's citizenry. To achieve only the life of the entrepreneur is improved but also the
economic development goals, proper management of society where the business is located.
the following elements is necessary:
1.human resources (labor supply, education, discipline,  Entrepreneurs boost economic growth by introducing
motivation); innovative technologies, products, and services.
2. natural resources (land, minerals, fuel, climate); Increased competition from entrepreneurs challenges
3. capital formation (machines, factories, roads); and existing firms to become more competitive.
4.technology (science, engineering, management, Entrepreneurs provide new job opportunities in the
entrepreneurship). short and long term.

The effective and efficient utilization of the various resource SOCIETAL AND ECONOMIC BENEFITS OF ENTREPRENEURSHIP
elements contribute to the economic growth.
The performance of the entrepreneur, however, will depend 1.Entrepreneurship produces more jobs that equate to an
much on the support provided by the government. Apart increase in national income.
from other obstacles, government restrictions limit the 2. Entrepreneurship amplifies economic activities of different
effectiveness of entrepreneurs. sectors of society.
3. Entrepreneurship introduces new and innovative products
CONCEPT OF ENTREPRENEURSHIP and services.
 The word “entrepreneur” was derived from the French 4.Entrepreneurship improves people’s living standards.
verb enterprendre, which means “to undertake.” This is 5.Entrepreneurship disperses the economic power and
pinpointing to those who “undertake” the risk of creates equality.
enterprise. 6. Entrepreneurship controls the local wealth and balances
 The enterprise is created by an entrepreneur and the regional development. It makes sure local resources are used
process is called “Entrepreneurship.” Entrepreneurs are properly and that every area has an appropriate allocation of
innovators, willing to take risks and generate new ideas resources.
to make it unique and profitable solutions to the 7.Entrepreneurship reduces social conflicts and political
present-day problems. unrest.
8.Entrepreneurship elicits economic independence and
RELEVANCE OF ENTREPRENEURSHIP TO AN ORGANIZATION capital formation. A country with more entrepreneurs is
highly likely to become financially independent and will less
1. Development of Managerial capabilities - this means that likely need the help other countries.
one of the benefits an entrepreneur gets is to develop his
managerial skills.

 A managerial capability refers to the management

capacities, expertise, and processes in the custody of
firms that are drawn to execute programs and activities
to achieve superior performance. In many cases inter-

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job, because entrepreneurs think that the battle is in the
scale and not the profitability.
 As a result, entrepreneurs may get frustrated because the
ENTREPRENEUR business does not go as planned, and some potential problems
arise from how employees operate. When they begin to
realize this, entrepreneurs will start knowing their employees
 An entrepreneur is a person who starts and/or operates
better, assessing their strengths and their areas for
a business. An entrepreneur is creative and innovative.
improvement. They will begin to create positions that match
He is a person who starts something new. An the requirements of the business and the employees'
entrepreneur may be male or female, young or old, expertise. Entrepreneurs can now move on to the next level.
professional, college graduate or school dropout.
 He is an owner-manager and willing to take risks. 3. The leader. Entrepreneurs in this level already enjoy seeing
Usually he is someone not willing to work for others. their people flourish, stepping up and producing great results
Instead, he wants others to work for him. It is a unique with minimal supervision. Unlike before where they are in
individual who has innate ability and extraordinary charge of virtually everything, they can now sleep peacefully
dedication to establish and manage a business, at night and have more freedom and time for themselves.
acknowledging all the risks and reaping its rewards. They already recognized key leaders in their organization.
 Like other vocations, being an entrepreneur is also a  In effect, these key leaders also enjoy the
calling. It is not a career that can just jump into when he entrepreneurs’ trust and are satisfied with the outcome
or she decides so. It entails a holistic business talent to of their careers. Entrepreneurs at this stage now focus
be considered one, ranging from product and marketing on the big picture and strategic direction of their
expertise to operations agility, and to financial business rather than in generating sales and operating
proficiency. the business. At this point, entrepreneurs can now
 An entrepreneur will only expect returns once he or she move on to the next level.
already added or created value out or an opportunity.
An entrepreneur's natural talent is being perceptive for 5. The investor. Investors look for more opportunities for
opportunities in his or her surroundings that normal their business to grow. They may either purchase one or two
people don't give importance to or often neglect. businesses that can potentially add value to the company, or
 He or she sees existing problems about a certain sell their established business (as a franchise) to potential
product or service as prospects rather than threats. entrepreneurs. They will delegate a suitable manager for
Leadership is the core of every entrepreneur. He or she such operations and will act as directors. When this becomes
is always excited about his or her business and bravely successful, they will now become true entrepreneurs.
takes risks. He or she innovates, executes his or her big
ideas, and rarely procrastinates. 5. The true entrepreneur. True entrepreneurs, based on their
 The definition of an entrepreneur only provides you experience, now aim for quality and excellence in their work.
with a general description or shows you what is They have fully learned, and continue to practice, a four-step
expected from an entrepreneur. However, process of thinking - starting with idealization, visualization,
entrepreneurship is composed of varying degrees or verbalization, and materialization. In idealization,
levels of intensity. According to Action Coach, there are entrepreneurs dream enormously and desire to build an ideal
five levels of entrepreneurial development. environment. In visualization, entrepreneurs start to create
plans to make the dream a reality. Verbalization involves
five levels of entrepreneurial development. sharing their ideas with other people, knowing that their
vision is already occurring. Materialization happens when the
1. The self-employed. Self-employed persons are, simply put, vision becomes a reality. In this stage, true entrepreneurs
not comfortable with the routines of a desk job. They do not now have an income that keeps on multiplying even if they
want to conform to a fixed working schedule. They want to do not put much effort.
do things in their own way and start to feel agitated when
controlled by the powers-that-be. EXPERTISE
 While they can be self-sufficient, their tendency is to 1. A technopreneur is an entrepreneur who puts technology
become too reliant on themselves, which leads to at the core of his or her business model.
exhaustion. They will eventually realize that a successful 2. A social entrepreneur is one who takes advantage of the
business should work for them, not the other way country's social problems and turns them to profitable
around. If they realize this, they can move on to the institutions with the intention of helping the disadvantaged
next level. community rather than making a profit.
2. The manager. In this level, entrepreneurs feel the need to 3. An intrapreneur is an entrepreneur in a large company or
step up and ask some help from the people around them. corporation who is tasked to think, establish, and run a new
They delegate and hire potential employees to do the work. big idea or project. Intrapreneurs are usually the product
However, they may have the tendency to get more people
who do not know the exact needs and requirements or the
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managers or the business development managers of a 5. Suppliers of products. Products and services are available
company. through the efforts of the entrepreneurs. Without them, a
4. An extrapreneur is an entrepreneur who hops from one scarcity of certain products and services will be felt.
company to another to act as the innovation champion,
providing creative and efficient solutions.

FOUR BASIC ASPECT OF BEING AN ENTREPRENEUR

FACTORS AFFECTING ENTREPRENEURSHIP
1. Creation of something of value.
1. Personality Factors which includes:
 This means entrepreneurs create products or services Initiative- which means doing things even before being told.
that can be offered for a price.
Proactive- which means he can classify opportunities and
2. Devotion of necessary time and effort. seize it.

 Entrepreneurs devote their time and effort towards the Problem Solver- which means he can retain good relations
attainment of their personal goals. In business, some of with
these goals are to earn profits, to make
products/services available in the community, to Perseverance- meaning he will pursue things to get done
provide employment and income for their family, and regardless of challenges.
other reasons.
Persuasion - means that he can entice people to buy even if
3. Assumption of necessary risks. they don’t.

 In the pursuit of their goals, entrepreneurs assume risks A Planner -meaning he makes plan before doing things and
on the possibility of losing whatever they put in. In do not fail to monitor it.
business there is the possibility to fail and lose
everything. But the possibility of earning big is even Risk-taker  -which means that he is willing to gamble but he
will calculate it first.
4. Getting rewards.
2. Environmental Factors which include political, climate,
 Many entrepreneurs reap the rewards of their efforts legal system, economic and social conditions and market
through the generation of profits and business situations.
expansion. Moreover, the prestige of being a business
owner provides intrinsic satisfaction.

ROLES OF ENTREPRENEUR IN THE ECONOMY

1. Mobilizers of capital. Entrepreneurs sometimes use their

own savings as capital for their business ventures. However,
if they do not have the capital, money can be borrowed from
banks to finance their intended business.

2. Service providers. Business ventures of entrepreneurs

could be along the line of service like parlors, spas, or coffee
shops.

3. Employers. Usually, entrepreneurs hire people to help

them in their business. A restaurant owner, for example, will
hire cooks and kitchen helpers while he, the owner, does the
purchasing and attending to the customers.

4. Tax payers. Business establishments pay taxes to the

government. Thus, more business would mean more taxes
and better government services.

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7. Innovative - the entrepreneurs have big business ideas and
they do not stop improving and thinking of new worthwhile
ideas for their business. The minds of entrepreneurs are rich
with big ideas that can add value to their existing business or
could become a game changer in the industry or business
where they belong. They do not stop improving and thinking
of new and worthwhile ideas for their business.
8. Agents of Change. Entrepreneurs are innovation
CORE COMPETENCIES IN ENTREPRENEURSHIP champions. They see opportunities in hopeless and complex
situations. They are always enthused to improve and develop
1.Economic and dynamic activity - Entrepreneurship is an new products and services and introduce them to the
economic activity because it involves the creation and market. They don’t settle for mediocrity and the status quo
operation of an enterprise with a view to creating value or 9. Sociable. Soft skills are one of the most important
wealth by ensuring optimum utilization of limited resources. competencies of entrepreneurs as these establish the
2. Innovative - Entrepreneurs constantly look for new ideas, relationship with the most important assets of the company -
thus he needs to be creative. its people and its customers. Relationship management is the
3. Profit Potential - The entrepreneur can be compensated key for employee and customer retention, which can be
by his profit coming from the operation. achieved by a sociable entrepreneur.
4. Risk bearing – The entrepreneur needs to gamble but wise 10. Networkers. A networker knows the key people to
enough to offset the risk. connect with. Networking can be a very intimidating task, for
it takes a lot of guts to pull it off. Successful entrepreneurs
COMMON COMPETENCIES IN ENTREPRENEURSHIP gain trust of their valuable network and maintain a long-
1. Decisive - an entrepreneur must be firm in making lasting relationship with them.
decisions. Entrepreneurs always have a decision about their 11. Balanced. The minds of entrepreneurs should have a
business. They do not settle for gray areas or unclear balance between the analytical and the creative side. Their
solutions. They do not leave an issue unsolved without a brains are always playing with "unique ideas" that no one has
disposition. Last, they base their decisions on scientific ever thought of yet. Entrepreneurs always have Eureka!"
calculations backed up by their experience and technical moments and enjoy them.
knowledge
2. Communicator - an entrepreneur must have a convincing TYPES OF ENTREPRENEURS
power. 1. Innovative entrepreneur - They are those who always
3. Leader - an entrepreneur must have the charisma to be make new things by thinking of new ideas. They have the
obeyed by his employees. ability to think newer, better and more economical ideas.
4. Opportunity seeker - an entrepreneur must have the These are the ones who invent the new ideas, new products,
ability to be the first to see business chances. . Entrepreneurs new production methods or processes, discover potential
have a talent for recognizing an opportunity even by using markets and reorganize the company’s structure. These are
the macrolevel data only. They know how to assess the net the industry leaders and contributes significantly towards the
cause and effect of an opportunity and decide intelligently if economic development of the country.
a venture should be considered or not. 2. Imitating entrepreneurs - They are those who don’t create
5. Proactive - controlling a situation by making things to new things but only follow the ideas of other entrepreneurs.
happen or by preparing for possible future problems. The imitating entrepreneurs are those who immediately copy
6. Risk Taker - they have the courage to pursue their business the new inventions made by the innovative entrepreneurs.
ideas. Entrepreneurs will not be successful if they do not take These do not make any innovations by themselves; they just
risks. By taking risks, entrepreneurs do not just grab imitate the technology, processes, methods pioneered by
opportunities left and right; they have to take into others. These entrepreneurs are found in the places where
consideration the potential various threats they may there is a lack of resources or industrial base due to which no
encounter. Entrepreneurs calculate risks; if they think that new innovations could be made.
there is a big chance of succeeding, they push through with 3. Fabian entrepreneurs - They are skeptical about changes
the venture and don't let the opportunity pass. to be made in the organization. They don’t initiate but follow
only after they are satisfied.

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These types of entrepreneurs are skeptical about the changes they can easily answer without heavily relying on their
to be made in the organization. They do not initiate any people. They understand the totality and specificity of their
inventions but follow only after they are satisfied with its business.
success rate. They wait for some time before the innovation 4. Problem Solvers. Entrepreneurs possess critical thinking
becomes well tested by others and do not result in a huge skills and look at problems as challenges or puzzles that they
loss due to its failure. need to solve. They know how to handle issues in any area of
4. Drone entrepreneur - They are those who lives on the the business, be it finance, operations, or marketing. They
labor of others. These entrepreneurs are reluctant to change listen to the plight of their employees on certain problems
since they are very conservative and do not want to make involving their units, and come up with strategic solutions.
any changes in the organization. Entrepreneurs are able to solve problems by immersing
They are die-hard conservatives even ready to suffer the loss themselves in day-to-day activities, knowing what is
of business. They are happy with their present mode of happening in and out of their business.
business and do not want to change even if they are suffering
the losses. PROBLEMS OF ENTREPRENEURSHIP
5.Social entrepreneurs - They are those who initiate changes 1. Entrepreneurship demands hard work.
and drive social innovation and transformation in the various 2. Entrepreneurship demands long working hours.
fields such as education, health, human rights, environment 3. Entrepreneurship may cause emotional stress.
and enterprise development.
STRENGTHS AND WEAKNESSES

CAREER OPPORTUNITIES OF ENTREPRENEURSHIP Skill, knowledge, health, interest, and the desire to grow are
1. Business Consultant - with the expertise of in the field of strengths that will push a person to be an entrepreneur.
entrepreneurship, he can be a very good source of advices to
other entrepreneurs and would be business man.
2. Teacher - a graduate of an entrepreneurship can use his Weaknesses, like lack of self-confidence or inability to speak
knowledge in teaching. well and to convince people are temporary and can be
3. Researcher - the entrepreneur can be employed as reversed. Physical appearance can be improved by going to
researcher by an enterprise. the beauty salon, or visiting the dentist or the dermatologist.
4. Sales - the entrepreneurship graduate can apply as A change in wardrobe, diet and exercise can do wonders to
salesman. improve self-confidence. The ability to speak well can be
5. Business Reporter - the entrepreneur being expert in the learned.
field, he can be employed as business reporter.
ENTREPRENEURSHIP OR EMPLOYMENT
CORE TRAITS OF ENTREPRENEURSHIP
These are the core traits that the entrepreneurs should Entrepreneurship and employment are two different career
develop in managing and running the business. paths that a person can choose depending on his or her
1. Leaders. Successful entrepreneurs always have the heart personal aspirations and work characteristics. It is really up to
of a leader. To be successful leaders, they must be a source the person at the end of the day on what career trail he or
of inspiration for their employees. They must be very she will follow, considering all compelling career factors that
humble, approachable, friendly, and also know how to listen are important to him or her.
to people's concerns.
2. Communicators. Entrepreneurs know how to use all forms IMPORTANT CAREER FACTORS
of communication to effectively share ideas and address
certain concerns with their customers or employees.  INCOME
Effective communication not only provides people with a
clear view of what the business offers, they also help prevent  Hiring and Firing, Organizational Setup, and Major
mishaps in an organization. Key Result Areas
3. Specialists. Entrepreneurs are experts in their chosen
 DAILY TASKS
business. They are tactical and are very keen with details.
When asked about the specifics of their product or service,  LEISURE TIME AND VACATION
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 TAXATION

 COMFORT LEVEL AT WORK

REMINDERS TO NEW ENTREPRENEURS

1. Make sure you get things done.

2. Be close to the customers.
3. Innovate. Be open to new ideas.
4. Produce through people. Trust them.
5. Be hands-on in running your business.
6. Be clear with your values.
7. Know your expertise. Continue doing it. Stick to what you
know best.
8. Keep things simple.
9. Keep a lean staff.
10. Keep firm on directions but at the same time give your
people autonomy. Be good at balancing the two.