CHAPTER I:

COMPONENTS OF
ENTREPRENEURSHIP

PREPARED BY:
GROUP I
MORENO, REINA ZYRA M.
RODA, AIZA
BENGHIT, JULIE ANN T.
ARQUILITA, BEA
PACAÑA, MARICON
ENTREPRENEURSHIP
● Entrepreneurship is the creation or
extraction of economic value.
● According to Fajardo (2009), it is the
capacity for innovation investment, and
expansion in new market, products, and
techniques.
 THE ENTREPRENEUR
● An individual who is alert to profitable
opportunities for the exchange of goods
and services.
● An entrepreneur is one who organizes,
manages, directs, and assumes the
risks of business and enterprise.
Difference of Businessman and Entrepreneur

ENTREPRENEUR
BUSINESSMAN
1. Starts a business
1. Starts a business
from a unique and
from an existing
innovative idea
idea.
2. Revolutionary
2. Traditional
3. Risk taker
3. Avoid taking risks
4. People
4. Profit oriented
(customer) oriented
5. Market player
5. Market leader
15 Questions that Potential Entrepreneur must
ask himself before setting up a new business:
1. Am I a planner, dreamer, or a goal setter?
2. Do I offer a product that people want to buy?
3. Do I have enough resources to start the business?
4. Will my business plan allow cash to flow as soon as
possible?
5. Am I working around a tight budget for my expenses?
6. Do I have a good credit status?
7. Am I expecting too much from my revenues as a result of my
hard work?
8. Am I ready to assess and measure everything before putting
it out for the public?
15 Questions that Potential Entrepreneur must
ask himself before setting up a new business:
9. Do I have strong people skills?
10. Do I enjoy making decisions and being in charge?
11. Am I good at short and long-range planning?
12. Am I willing to take initiative when confronted with a difficult
situations?
13. Am I flexible, and can adapt to changing circumstance?
14. Am I willing to take calculated risks?
15. Am I ready to learn and accept the mistakes that I might
encounter along the way?
Basic Realities that must face when
starting a business
● Demand for your product or
service
● Cash flow
● Income potential
● Marketability and flexibility
 THE
ENTREPRENEURIAL
SKILLS AND
COMPETENCIES
 Entrepreneurial Skills and Competencies

01. The Entrepreneur as a Missionary

02. Entrepreneur is Goal Driven

03. The Entrepreneur is a Marketing Man

04.

04. The Entrepreneur Starts Small to Become Big

The Entrepreneur as a Missionary
● The entrepreneur is a missionary who
perceives opportunities inherent in the
exchange of goods and great desire to
profit.
● The entrepreneur creates an
environment in which success is
possible and the possibility of failure is
controllable.
Entrepreneur is Goal-Driven
● An entrepreneur is goal-driven and self-
confident as he exercises the locus of
control.
● He sets high goals and strives to attain
the projected target and
accomplishments.
The Entrepreneur is a Marketing Man
● Takes the lead for innovation and
makes modifications to make the
customer aware that his product or
service is more superior to those offered
by others.
● The needs and wants of customers are
properly identified as these are the
propelling reasons to take opportunity to
make profit.
The Entrepreneur Starts Small to Become Big

● At the early stage as entrepreneur, their

growth orientation is for expansion of
their operation and they persistently
pursue approaches that differentiate
them from other managers.
THE MAKING OF AN
ENTREPRENEUR
The Making of an Entrepreneur
● The making of an entrepreneur is a
dynamic process and an approach.
● As an approach, the entrepreneur
considers the business opportunity as a
chance to find new ways to solve the
problem rather than solving the problem.
● Entrepreneurship is a process that can
be developed, learned, and nurtured.
ENTREPRENEURSHIP AS A DYNAMIC
PROCESS
● Entrepreneurship is a dynamic process
of innovation and the establishment of
new opportunity for the creation of new
venture.
● The real entrepreneur is an individual
with the greatest drive for expansion
and growth and has propensity to make
a difference.
FACTORS THAT DEVELOP
ENTREPRENEURIAL
ACTIVITIES
1. The Entrepreneur Takes the Initiative
With his great interest to
capitalize on the opportunity at hand,
the entrepreneur takes the initiative of
venturing into business.
2. Organizational of Capital Resources
While talents and ambitions are
great resources of the entrepreneur,
financial and human resources are
important ingredients in the start of the
organization.
3. The Development of Administrative Machinery

The management is developed

with organizational structure based on
the need of operation. Specific duties
and responsibilities are assigned to
individuals with talents and skills that fit
their respective position.
4. The Development of Entrepreneurial Autonomy

The entrepreneur develops

autonomy in the operation of the
enterprise as he takes the lead in all
the activities of the organization
specially in the early stage of
operation. Locus of cost control must
be in his hands.
5. The Development of SWOT Analysis

The entrepreneur must see the

environment of the enterprise based on
the SWOT analysis so that the risks
involve could be seen before it
happens. Forecasting environmental
events are antidote to future business
risk.
 PECULIAR CHARACTERISTICS OF
MANAGERS IN SOLVING PROBLEMS
1. He develops systems and procedures that
are precise based on current practices in
the industry.
2. The manager is interested in solving
organizational problems rather than finding
other avenues in the solution of the
problem.
3. The manager calibrates in the refinement
of policies and procedure and tends to
revise them to solve existing problems.
 PECULIAR CHARACTERISTICS OF
MANAGERS IN SOLVING PROBLEMS
4. He finds ways and means to provide
solution and compliance to routine
activities.
5. He is interested in details and sensitive to
group cohesion and extract group
cooperation as a means to group
accomplishments.
 CHARACTERISTICS OF AN INNOVATOR
ENTREPRENEUR IN SOLVING PROBLEMS
1. He looks at the problem on different angle
and finds means to circumvent the same.
2. He discovers the roots of the problem and
develops avenues to better solve the
problem. He formulates solutions and
alternatives.
3. He develops basic assumptions and
hypothesis related to current practices and
makes innovations based on careful
analysis through SWOT.
 CHARACTERISTICS OF AN INNOVATOR
ENTREPRENEUR IN SOLVING PROBLEMS
4. The innovator entrepreneur is interested in
the end results rather than the means to
achieve it. He has little tolerance for details
and routine work.
5. He capitalizes on people with bright ideas
and talents and gets their opinion and
consensus and with little regard for people
with mediocre ideas.
THE DEVELOPMENT OF
ENTREPRENEURSHIP
CREDITS: This presentation template was created by Slidesgo,
and includes icons by Flaticon, and infographics & images by
Freepik
The Making of a Filipino Entrepreneur
The slow development of
entrepreneurial activity in the Philippines is
attributed to the colonization of the country for
over 300 years. The concept of owning a small
business, such as a sari-sari store or tailoring
shop, is considered a successful
entrepreneurial activity. However, the success
of Filipino entrepreneurs often starts on a
shallow foundation, with copy-cat syndrome
being prevalent.
The Making of a Filipino Entrepreneur
The food business outlet is one of the
most abused and prominent activities of
Filipino business entrepreneurs, including
small outlets for distributing basic groceries
and cellular phone loads. This slow
development in entrepreneurial activity
highlights the need for a more comprehensive
approach to supporting Filipinos' needs and
desires.
The Making of Jollibee Foods’ Corporation
Jollibee Corporation, a Filipino entrepreneur
with Chinese blood, has achieved success in the
food industry. The founder, who inherited his
business acumen from his parents, started with an
ice cream stand and later expanded into a multi-
millionaire business. His talent for innovation and
entrepreneurial spirit contributed to the company's
growth and success in the Filipino food industry.
The Foundation of National Bookstore
Socorro Ramos, the founder of National Book
Store, grew up in a poor family, balancing her studies
and hard work. After high school, she worked as a sales
clerk at Goodwill Bookstore, where she learned the
rudiments of book business. The Ramos couple, with
their savings, bought the store's office in Santa Cruz,
Manila, and built a building complex in Pasig. They
expanded their business horizontally and vertically,
establishing a printing press to print local books and
office forms. Their children were trained the same way,
and they are all successful in inheriting the growing
business empire.
 THE CHALLENGES
FOR
ENTREPRENEURSHIP
 The Challenges for Entrepreneurship
1. The new entrepreneur must be a doer and
willing to work hard until he achieves the task he
wants for himself.
2. Personal attention and comprehensive
awareness for the progress of the business is
not rusted on other people.
3. The new entrepreneur must have high sense of
integrity he stands firm on his principles
and ideals.
 The Challenges for Entrepreneurship
4. Emotional stability is an important factor in the
making of entrepreneur.
5. The built in self-starting mechanism that drives
an entrepreneur to success is his executive
ability to manage people and resources.
 THE STARTING POINT
TO ENTREPRENEURIAL
SUCCESS
 The Starting Point to Entrepreneurship
1. Start to be on your own.
2. Explore the business environment.
3. Be in control.
4. Have a good accountant.
5. Seek the advice of professionals.
ENTREPRENEURIAL
MANAGEMENT
DEMANDS
 Entrepreneurial Management Demands
1. The entrepreneur is alert to opportunities and
perceptive to make things happen.
2. The entrepreneur has the health and endurance
to work long hours.
3. The entrepreneur of flexibility and change.
4. The entrepreneur is self-assured.
5. The entrepreneur seeks others, opinion or
make researches.
 PROFILE OF A
SUCCESSFUL
ENTREPRENEUR
 Profile of a Successful Entrepreneur
1. The entrepreneur has strong desire for
independence.
2. The entrepreneur develops strong drive to
succeed.
3. The entrepreneur has strong determination in
decision-making.
4. The entrepreneur develops feedback
mechanism for results.
5. The entrepreneur is a result-driven individual.