CHAPTER 1

THE PRACTICE OF
ENTREPRENEURHSIP
 The Start of Entrepreneurship in the
Philippines
−Entrepreneurship has become the solution to
poverty through job formation, wealth creation
and social empowerment.
−For now, the Philippine government sees
entrepreneurship as the sole means to address
the poverty problem.
 The Skills Important in
Entrepreneurship
1. The Skill of Play
- Allows imagination to explore, expose the
mind to a treasure of opportunities and
potentials and is very innovative.
2. The Skill of Experimentation
- Calls to act so as to learn, meaning
attempting to do something, learning from
such attempts and structuring said learning
when the next thing similar happens.
 The Skills Important in
Entrepreneurship
3. The Skill of Empathy
- Being sympathetic with the feeling,
situation, purposes, opinions, and wants of
other people. It is putting one’s shoes in the
shoes of others.
4. The Skill of Creativity
- Being open-minded and letting loose one's
ability to create, discover opportunities and
resolve problems.
 The Skills Important in
Entrepreneurship
5. The Skill of Reflection
- Organizes all the four skills. The
discomfort handled, the feelings felt,
and the knowledge possessed gives
new perspectives and allow for more
assessment of the results and forming
of conclusion.
 The Truths about Entrepreneurship
1. It is Not Solely for Startups
- A business does not remain to be a
startup, because it can always develop
and progress into something bigger.
 The Truths about Entrepreneurship

2. Entrepreneurs Do Not Have Exceptional

Personality Qualities
- Although without scientific proof,
traditionally there are four recognized
qualities: achiever, influencer, risk taker,
and open-minded.
 The Truths about Entrepreneurship
3. It can be Taught Yet Entails Practice
- Entrepreneurship requires a person to
possess a set of skills that should be
improved continuously through practice
that can be used for entrepreneurial
action.
 The Truths about Entrepreneurship

4. Entrepreneurs are Not So Much Risk-Takers

- They normally would make calculations
first prior to taking the next step and
usually measure every lose.
 The Truths about Entrepreneurship

5. Entrepreneurs Work in Partnership More

than They Compete
- Partnership usually brings about more
efficiency, additional fresh ideas and
produces ingenuity and innovation.
 The Truths about Entrepreneurship

6. Entrepreneurs are More on Doing than

Planning
- Investors are more fascinated with
the ability of an entrepreneur to
deal with a series of difficult
situations, able to solve problems
and take positive feedback as he is
mentioned.
 The Truths about Entrepreneurship

7. It is Truly a Life Skill

- Can offer the methodological way of
thinking, opportunity identification,
specific way of problem-solving,
adapting to new situations and
governing ones’ goals and ambitions.
The Truths about Entrepreneurship
• Life skills:
1. Resilience
2. Agility
3. Negotiating
4. Problem solving
5. Relationship building
6. Mindfulness
 Types of Entrepreneurship
1. Intrapreneurship
- Refers to encouraging people to
discover high-risk, high-reward
concepts with the support of a big
corporate organization
• The search function of Gmail was
the first of its kind among Email
service providers. The template
has also improved storage
capacity. These days Gmail is the
most popular used platforms on
the Internet.
 Types of Entrepreneurship

2. Entrepreneurs Inside
- Similar with intrapreneurship, but the
only difference between them is that
entrepreneurs function inside any type
of organizations such as government
agencies, non-profit organizations,
religious entities, self-employed and
even cooperatives, whether they are big
or small.
• Puregold is a popular trader of consumer products
such as canned goods, housewares, toiletries, dry
goods, food products, among others on a
wholesale and retail basis.
 Types of Entrepreneurship

3. Buying a Franchise
- It is a type of license bought by an
entrepreneur as the franchise from
an existing branded business
(franchisor) so that they may do
business under the name of said
brand.
 Types of Entrepreneurship

• 7-11, Ace Hardware, Pizza Hut, Jollibee,

McDonalds and a lot more.
 Types of Entrepreneurship

4. Buying a Small Business

- The entrepreneur buys out the existing
owner and takes the management and
operations of the small business.
- The new owner may be able to acquire
valuable patents or copyrights, or have
the opportunity to drive an
unprotective business in an exciting
direction with his expertise.
 Types of Entrepreneurship

5. Social Entrepreneurship
- Pursuing innovative applications
that have the likelihood of solving
community-based problems.
 Types of Entrepreneurship
• Bayani Brew products are ice tea using indigenous
ingredients such as lemongrass, pandan and sweet
potato tops. The local and indigenous ingredients are
supplied by subsistence farmers to help them in their
livelihood.
 Types of Entrepreneurship
6. Family Business
- Owned and managed by members of the
family that is usually handed down from
generation to generation.
 Types of Entrepreneurship
• ShoeMart, Metrobank, the Aboitiz Group, D.M. Consunji,
Inc. (DMCI) are among the many owned and managed
brands by some of the most influential families in the
Philippines.
 Types of Entrepreneurship

6. Serial Entrepreneurs
- Constantly crops up with fresh ideas and
starts new businesses. A habitual one who
takes the challenges of repeatedly initiating
on putting up a business.
 Types of Entrepreneurship
• Oprah Winfrey started her career as a local TV
anchor. In 1986, she created the Harpo
Productions, Inc. This production company
owned rights to the “The Oprah Winfrey Show”
from 1988 onwards.
 Entrepreneurship as a Method

1. Bird in Hand
- Creating solutions using the resources
available at the disposal of entrepreneurs
instead of having goals in mind.
 Entrepreneurship as a Method
• Socorro C. Ramos started the National Bookstore in
1942 with only Php211 as starting capital. It just
rented a small-corner space of a Haberdashery
located at the foot of Escolta Bridge in Santa Cruz,
Manila.
 Entrepreneurship as a Method

2. Affordable Loss
- Investing much that an
entrepreneur is willing and can
afford to lose. If it is an affordable
loss and the possible gains are big,
then the decision can be
implemented.
 Entrepreneurship as a Method
Mariano Que, owner of Mercury Drug first worked in a
drugstore before the war. When he was given an
opportunity, he invested his Php100 in the sulfathiazole
tablets. His experience, his Php 100 and a pushcart were
the resources which Mr. Que was then willing and can
afford to lose that time.
 Entrepreneurship as a Method

3. Crazy Quilt
- Entering into new partnerships that
can bring in new opportunities and
reduces uncertainty.
 Entrepreneurship as a Method
• Jollibee Foods Corporation (JFC), the largest fast-food
chain in the Philippines, partnered with Globe Business,
the enterprise and information and communications
technology (ICT) arm of Globe Telecom, to centralize its
express delivery service to one convenient number: #8-
7000.
 Entrepreneurship as a Method

4. Lemonade
- Bad surprises and unexpected turns
are not always negative,
entrepreneurs see them as new
opportunities.
 Entrepreneurship as a Method
• Dr. Cecilio Pedro was the owner of Aluminum Containers,
Inc., the main supplier of aluminum collapsible
toothpaste tubes to Colgate-Palmolive Co. and the
Philippine Refining Company (PRC) now Unilever Group.
However, in 1985 these companies started to use plastic
laminated tubes in replacement of aluminum collapsible
tubes. Mr. Pedro was left a stockpile of aluminum tubes
with no use for them. However, he was hesitant to just
threw of the factory’s equipment. Dr. Pedro decides to
revive his factory. That time as Lamoiyan Corporation,
the first Filipino company to enter the toothpaste
industry.
 Entrepreneurship as a Method

5. Pilot in the Plane

- Future is really something that needs to be
controlled and not try to predict. Hence, the
focus should be on those entrepreneurial
activities that are within the bounds of one’s
control.
 Entrepreneurship as a Method
• Corazon D. Ong, the founder of CDO foods, used her
profession as a dietician who understood the
fondness of Filipinos in processed foods. She entered
into the food process business.
 Components of the Entrepreneurship
Model
1. Identify Desired Impact
- An entrepreneur must combine his curiosity,
drive, and motivation to achieve something
beyond the bounds of himself.
- Profit motive is not sustainable because
entrepreneurship calls for hard work and the
satisfaction and desire come from deep inside.
 Components of the Entrepreneurship
Model
2. Begins with Means at Hand
- Current resources at hand are important
component that need to be ready for use to
accomplish immediate action.
- “who am I” , “what do I know”, and “whom do I
know”
 Components of the Entrepreneurship
Model
3. Describe the Idea Today
- Desired impact and means at hand should be
combined to fully describe the idea.
- Only then the entrepreneur could start action
today with the resources he has today.
 Components of the Entrepreneurship
Model
4. Estimate Affordable Loss
- Risk is difficult to calculate and be used as an
effective criterion for decision-making.
- Instead of estimating risk, entrepreneurs
think about the things they are willing to
lose.
 Components of the Entrepreneurship
Model
5. Reflect and Be Honest
- Once an entrepreneur no longer has the
desired impact or has exceeded his affordable
loss, that he may quit.
- Otherwise, he must think of the next step to
do to sustain his venture.
 Components of the Entrepreneurship
Model
6. Take Small Action
- First action is just a small step to get going.
- Each step must not be extreme but still these
can be done.
- Once every step is properly calculated and
the affordable loss is estimated, the
entrepreneur can control his risk.
 Components of the Entrepreneurship
Model
7. Network and Enjoin Others in Journey
- Practice of entrepreneurship is about
collaboration and co-creation.
- Sharing one’s ideas and joining others to be
part of the entrepreneurship bandwagon shall
also increase the entrepreneur’s resources,
expand the possibilities available as well as
confirm his idea.
 Components of the Entrepreneurship
Model
8. Build and Learn from What Has Been Learned
- Evaluating performance is improving one’s idea.
- At this step, nothing is right/wrong, just making
things better.
- It’s always best to celebrate when success comes.
However, when failures happen, embrace them
because of the learnings that come from them.
 Components of the Entrepreneurship
Model
9. Managerial and Entrepreneurial Thinking
- Managerial thinking is usually best to apply
during times of certainty. It uses information and
data as basis for decision-making.
- Entrepreneurial thinking refers to the ability to
identify opportunities in the marketplace and
discover the most fitting ways and time to take
advantage of them.
 Components of the Entrepreneurship
Model
9. Managerial and Entrepreneurial
Thinking
MT ET
Manage and mitigate risk Evaluate and embrace risk
Safeguard inventions and Exchange ideas and share
insights learnings
Avoid failing Fail fast and try again
Work within the confines of Think in terms of possibilities
the current environment
Increase the bottom line Create value and make a
difference
 Entrepreneurship Requires
Deliberate Practice
• Entrepreneurship method is both a mindset and a
practice.
• There is a certain type of practice that makes a
novice entrepreneur, be an expert serial
entrepreneur.
• Having a milestone today should not keep anyone
from becoming comfortable.
 Activities
1. Discovering the entrepreneur in Me
• Who am I as a person?
• What hard skills do I know? ( e.g. Programming
skills, Social Media Marketing, Bookkeeping,
Spoken languages, etc.)
• What soft skills do I know?(e.g. Critical thinking,
Creative thinking, Work ethic, Collaboration, etc.)
• Who are the people in my network?
 2. You are an Entrepreneur- A Profile of Filipino
Entrepreneurs
Critical Thinking Questions
1. What fuels Filipinos to become entrepreneurs? Do you feel
the same sentiments? Explain briefly?
2. What are some of the proven traits of Filipino
entrepreneurs that made them successful? Relate these to
the lessons here in this chapter.
3. Which among the traits do you think you already have at
this point which can lead you to become a successful
entrepreneur in the future? Describe here.