ENTREPRENEURSHIP

Objective
At the end of this lesson the learners can:

Discuss the relevance of entrepreneurship in

general, including its economic importance.
Define who is entrepreneur
Explain the key concepts of common and
core competencies of entrepreneurship.
Delineate clearly between entrepreneurship
and employment
Explore opportunities for entrepreneurship as
a career.
Content
Relevance of the course
Key concepts and common
competencies
Core competency in Entrepreneurship
Career opportunities
An Entrepreneur
 One’s natural talent is being
perceptive for opportunities in his or
her surroundings that normal people
don’t give importance to or often
neglect.
 Leadership is the core of every
entrepreneur.
5 Levels of Entrepreneurial
Development: (SALIENT
FEATURES)

1. The Self - employed

 Not comfortable with routines of a
desk job
 Don’t want to conform to a fixed
working schedule
 They want to do things in their own way
and start to feel agitated when controlled
5 Levels of Entrepreneurial Development:

2. The Manager
 Entrepreneurs in this level feel the need
to step up and ask some help from others.
 They delegate and hire potential employees
to do the work.
 They may have the tendency to get more
people who do not know the exact needs
and requirements of the job, because
entrepreneurs think that the battle is in the
scale, not the profitability.
5 Levels of Entrepreneurial Development:

3. The Leader
 This level already enjoy seeing people
flourish, stepping up and producing great
results with minimal supervision.
 They now focus on the big picture and
strategic direction of their business
rather than in generating sales and
operating the business.
5 Levels of Entrepreneurial Development:

4. The Investor
 They look for more opportunities for
their business to grow.
 They will delegate a suitable manager for
such operations and will act as directors.
When this become successful, they will
now become true entrepreneur
Ex. Tony Caktiong founder of Jollibee
 They may either purchase one or two
businesses that can potentially add
value to the company or sell their
5 Levels of Entrepreneurial Development:

5. The True Entrepreneur

 Aim for quality and excellence of their
work.
 They have fully learned, and continue to
practice, a four step process thinking
starting with:
 Idealization
 Visualization
 Verbalization
 Materialization
A FOUR STEP PROCESS THINKING OF
ENTREPRENEUR
1. Idealization
 Entrepreneurs dream enormously and
desire to build an ideal environment.

2. Visualization
 Starts to create plans to make the dream
a reality.
A FOUR STEP PROCESS THINKING OF
ENTREPRENEUR
3. Verbalization
 Involves sharing their ideas with other
people, knowing that their vision is
already occurring.
4. Materialization
 Happens win the vision becomes reality.
 True entrepreneur
 Have an income that keeps on
multiplying even if they do not put much
effort.
OTHER TERMS TO DESCRIBE AN
ENTREPRENEUR
1. TECHNOPRENEUR
 An entrepreneur who puts technology at
the core of his or her business model.

2. SOCIAL ENTREPRENEUR
 One who takes advantage of the
country’s social problems and turn them
to profitable institutions with the
intention of helping the disadvantage
community rather than making a profit.
OTHER TERMS TO DESCRIBE AN ENTREPRENEUR

3. INTRAPRENEUR
 An entrepreneur in a large company or
corporation who is tasked to think,
establish, and run a new big idea or
project.
Usually the product managers or the
business development managers of a
4. EXTRAPRENEUR
company.
 Who hops from one company to another
to act as the innovation champion,
providing and efficient solutions.
OTHER TERMS TO DESCRIBE AN ENTREPRENEUR

3. INTRAPRENEUR
 An entrepreneur in a large company or
corporation who is tasked to think,
establish, and run a new big idea or
project.
Usually the product managers or the
business development managers of a
4. EXTRAPRENEUR
company.
 Who hops from one company to another
to act as the innovation champion,
providing and efficient solutions.
Economic
Benefits of
Entrepreneurship
in
Society
Economic Benefits of Entrepreneurship in society:

1. Entrepreneurship produces more

jobs that equate to an increase in
national income.

 Millions of unemployed people will

have opportunities to have a decent
occupation. Small businesses produce
jobs and create wealth.
Economic Benefits of Entrepreneurship in society:

2. Entrepreneurship amplifies
economic activities of different
sectors of society.

 A simple eatery in a rural area

and a coffee shop in an urban area
both ignite economic activity
regardless of their business scale.
Economic Benefits of Entrepreneurship in society:

3. Entrepreneurship introduces new

and innovative products and
services
 New products and services are
always available in the market because
of the ingenuity of entrepreneurs to seek
opportunities and improve on them.
Economic Benefits of Entrepreneurship in society:

4. Entrepreneurship improves
people’s living standards.

 How can you look good if not for the

services of your nearby salon or barber
shop?
 How can you live without the sari-sari
store near your house where you buy
basic needs?
Economic Benefits of Entrepreneurship in society:

5. Entrepreneurship disperses the

economic power and creates
equality.
 It balances the economy by
distributing national income to more
business rather than to only few
monopolies.
Economic Benefits of Entrepreneurship in society:

6. Entrepreneurship controls the local

wealth and balances regional
development.
 It make sure local resources are used
properly and that every area has an
appropriate allocation of resources
Economic Benefits of Entrepreneurship in society:

7. Entrepreneurship reduces social

conflicts and political unrest.

 Imagine if there are no or only few

sari-sari store or supermarket stores in
your area. All of you will then fight for
the food supplies because the store
cannot supply all your needs.
Economic Benefits of Entrepreneurship in society:

8. Entrepreneurship elicits economic

independence and capital
formation.
 A country with more entrepreneurs is
highly likely to become financially
independent and will less likely need the
help of other countries. This also applies
to families, barangays, and cities.
 Entrepreneurship creates wealth instead
of borrowing wealth.
COMMON TRAITS THAT
ENTREPRENEURS SHOULD
ALWAYS HAVE
 COMMON TRAITS THAT ENTREPRENEURS SHOULD ALWAYS HAVE

1. PROACTIVE

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 always enthused to improve and develop
new products and services and introduce them to
the market.
3. RISK TAKERS
 They have take consideration the potential various
threats they may encounter, and if there is a big
chance of succeeding, they push through with the
venture and don’t let the opportunity pass.
 COMMON TRAITS THAT ENTREPRENEURS SHOULD ALWAYS HAVE

4. HAVE A SHARP EYE FOR OPPORTUNITY


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

Relationship management is the key for employee
and customer retention, which can be achieved by
a sociable entrepreneur.
6. NETWORKERS
 Knows the key people to connect with.
COMMON TRAITS THAT ENTREPRENEURS SHOULD ALWAYS HAVE

7. DECISIVE
 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.
 COMMON TRAITS THAT ENTREPRENEURS SHOULD ALWAYS HAVE

8. BALANCED
 They balance between analytical and the creative
side
 Always playing with “unique ideas” that no one
has ever thougth of yet.
 Always have “EUREKA” moments and enjoy time.
(Eureka moment definition is - a moment of sudden, triumphant discovery, inspiration, or
insight.)
9. INNOVATIVE
 Do not stop improving and thinking of new and
worthwhile ideas for their business.
CORE TRAITS THAT
ENTREPRENEURS SHOULD
DEVELOP IN MANAGING AND
RUNNING THE BUSINESS
CORE TRAITS THAT ENTREPRENEURS SHOULD DEVELOP IN MANAGING AND RUNNING THE
BUSINESS

1. LEADERS
 They must be a source of inspiration for their
employees.
 Act on their responsibilities that were given to
them.
 Use their strengths and limitations to make
the best of a situation.
 Decisive and know ho to own up their decision
 Know how to unite the team and bring out the
best in every employee.
 CORE TRAITS THAT ENTREPRENEURS SHOULD DEVELOP IN MANAGING AND RUNNING THE
BUSINESS

2. COMMUNICATORS

Know how to use all forms of communication to
effectively share ideas and address certain
concerns with their customers of employees.
3. SPECIALIST
 Tactical and are very keen with details
 Can easily answer about their product without
relying on their people.
 Innovating and improving the product or service
offerings because they know their intricacies.
 Being in action instead of being behind the scenes.
CORE TRAITS THAT ENTREPRENEURS SHOULD DEVELOP IN MANAGING AND RUNNING THE
BUSINESS

4. PROBLEM SOLVERS
 Possess critical thinking skill and look at
problems as challenge or puzzle that they
need to solve.
 Know how to handle issues in any areas of
the business.
 Have faith that every problem has a solution
no matter how hard it is.
 Courageous and know how to face
consequences of their decisions.
ENTREPRENEURSHIP

 Is a proactive of developing a business

venture to make a profit.
 It involves seeking opportunities for a
market, establishing and operating a
business out of opportunity, and
assessing its risk and rewards through
close monitoring of the operations.
Who is the
Entrepreneur?
Who is the Entrepreneur?

 The word “ Entrepreneur” has a

French origin and was coined from
the words entre, which means “
between”, and pendre, which
means “to take”
An Entrepreneur
 Is a unique individual who has the
innate ability and extraordinary
dedication to establish and manage a
business, acknowledging all the risks
and reaping its rewards.
 Will only expect returns once he or
she already added or created value out
of an opportunity.
Pros and Cons of
Entrepreneurship
vs.
Employment
IMPORTANT CAREER ENTREPRENEUR EMPLOYEE
FACTORS
1. • Income generated passively • Income generated actively
Income even when the (i.e.,on working hours only; no
entrepreneur is resting work- no pay)

• Opportunity income • Income usually fixed per

unlimited month and increases every
year depending on the
• Income only entered when employer and the employee’s
the business is successful performance

• Income earned whether the

business is successful or
unsuccessful
IMPORTANT CAREER ENTREPRENEUR EMPLOYEE
FACTORS
2. Hiring and • Provides jobs • Seeks for a job.
Firing, • Fully responsible for
Organizational serving customers, • Has the goal of satisfying only
Setup, and making the business the employer or the direct
profitable/sustainable,
Major Key supervisor
and providing employee
Results Areas satisfaction.
• Has the power to • Fully dependent on the
disengage employer’s performance; is at
nonperforming risk of losing his her job if the
employees applying the company does not perform
due process policy of well
disengaging personnel.
• Can venture to • Can only work for the current
expansion such as employer exclusively
franchising and buying
other similar businesses.
Pros and Cons of Entrepreneurship vs.
Employment
IMPORTANT ENTREPRENEUR EMPLOYEE
CAREER
FACTORS
3. Daily Task • Performs all necessary • Has routine tasks and works on
variable task to establish and regular or normal hours
manage a startup business;
spend more hours on work • Follows policies, procedures and
than a regular employee and memoranda from the employer
sometimes gets no sleep.

• Prepares policies, procedures,

and memoranda for
businesses.
4. Leisure Time • Has a flexible schedule and • Has limited number of vacation
and Vacations can take unlimited number of days imposed by the employer
vacation days (applicable only
if the business has stabilized
already)
CAREER
IN
ENTREPRENEURSHIP
CAREER IN ENTREPRENEURSHIP

Entrepreneurship consist of vast career

options depending on the passion and
field of interest of the entrepreneur. The
saying “ When you love what you do,
it’s as you are not working” is very
much applicable to entrepreneurs who
consider managing their business as
enjoyment rather than working
exhaustively.
SOME OF THE MOST COMMON SMALL BUSINESS IN
THE PHILIPPINES

Sari-sari Store Food cart

Rice retailing business
Cellphone Flea markets or
loading business tiangge
Bakeries Online selling
business
CAREER IN ENTREPRENEURSHIP

No successful business started huge

right away. A business starts with idea.
Once the business is establish, the
business owner, the entrepreneur, can
choose to franchising, intrapreneurship
and acquisition.
CAREER IN ENTREPRENEURSHIP

1. FRANCHISING
 Is a business arrangement wherein
the franchisor acquires distribution
centers through the franchises or the
affiliated dealers.
 Franchisor, the one who is the owner
of the business
 FRANCHISE OR STARTUP BUSINESS

Entrepreneur Philippines’ franchise business options

in the Philippines
 Bakeries, bakeshops and  Food and snack carts
bread product  Gas stations/ petroleum
 Bars , cafes and coffee shops products
 Beverage and confectionery  General Merchandise and
 Car care retails
 Clothing and Accessories  Health and wellness (salon,
 Convenience Store massage, spa and gym
 Drug Stores and Pharmacies  Schools
 Fast food establishments and  Services (personal and
restaurant business)
 Water Stations
 CAREER IN ENTREPRENEURSHIP

2. INTRAPRENEURSHIP
Managing a startup business in an
established
Jollibee Foods business
Corporation – Jollibee is a fast-food chain that has
become a household name in the Philippines. It was started by Tony Tan
Caktiong, who encouraged his employees to come up with new ideas
and innovations to improve the company’s offerings.
This led to the creation of some of Jollibee’s most popular menu items,
such as the Chickenjoy and Jolly Spaghetti.

Procter & Gamble Philippines – Procter & Gamble is a global

consumer goods company that has been operating in the Philippines for
over 80 years.

The company encourages its employees to come up with new product

ideas and innovations, which has led to the successful launch of several
new products in the Philippines, such as Safeguard soap and Pantene
CAREER IN ENTREPRENEURSHIP

2. INTRAPRENEURSHIP
Smart Communications, Inc. – Smart
Communications is a telecommunications company
that has been operating in the Philippines for over
20 years. The company encourages its employees
to think like entrepreneurs and come up with new
ideas to improve its services.

This has led to the successful launch of several new

products and services, such as the Smart Money
mobile banking service and the Smart LTE mobile
data network.
CAREER IN ENTREPRENEURSHIP

3. ACQUISITION

 Buying another similar business or a

new business.
Example:
SM Investment Companies acquired 2GO
Group Inc.
Ayala acquired half of online retailer
Zalora
 Other Additional Business
Opportunities
Dealership
an establishment authorized to buy and sell specific goods, especially
motor vehicles.

Direct Selling
is the selling of products in a non-retail setting, for example, at home,
online, or other venues that are not a store. It eliminates middlemen who
are involved in distribution, such as wholesalers and regional distribution
centers. Instead, products are sent directly from the manufacturer to the
sales company, then to the rep or distributor, and finally to the
consumer.
 Other Additional Business
Opportunities

Distributorship
Distributorship is the relationship between a manufacturer
or supplier and a wholesaler who has the authority to
promote and sell that manufacturer's or supplier's
products, usually within a specific location. Depending on
the commodity, distributors may sell products directly to
customers or various companies.
Entrepreneurship offers a lot of careers opportunity that
able the learner to work in any field. This will be the best
jobs to all aspiring entrepreneurs as long as they are
equipped with the right traits.

(3) types of businesses

Service business

This type of business offers professional skills, advice

and consultations.
Examples: barber shops and beauty parlors, repair
shops, banks, accounting and law firms
(3) types of business organizations

2. Merchandising Business

This type of business buys at wholesale and later

sells the products at retail. They
make a profit by selling the merchandise or
products at prices that are higher than their
purchase costs. This type of business is also known
as "buy and sell".
Examples: book stores, sari-sari stores, hardware
stores
(3) types of business organizations

3. Manufacturing Business

This type of business buys raw materials and uses

them in making a new product, therefore combining
raw materials, labor and expenses into a product
for sale later on.
Examples: shoe manufacturing businesses, car
manufacturing plants
ACTIVITY
1.What are the qualities that you possess as an
entrepreneurship student? Give at least 5 qualities and
explain each.
2. Explain the meaning of the following statements:
a)Entrepreneur as a missionary.
b)Entrepreneur as a marketing man.
c)Entrepreneurs start small to big.
Identify what competencies for entrepreneurial success is/
are involved in this scenario:
3. All finance staff have a meeting with suppliers at 9:00 in
the morning. Because of an accident on the road, it causes
traffic and it is the reason why you came late. If you were
Essay:
What are the three business
that you think will be most
successful at?

Why do you say so?

 TASK:
 Choose three (3) successful entrepreneurs
from different fields that you know of and are
engaged in common small and franchise
businesses enumerated previously.
 Your goal is to understand the mindset of
established entrepreneurs by playing the role
of an interviewer.
 Ask these three chosen entrepreneurs the
following questions using the interview
Go To Next
method Slide
of research:
TASK:
1. What motivated you to become an entrepreneur?
2. What do you think are your characteristics and competencies that
made you a successful entrepreneur?
3. Aside from the business that you have, what other businesses are
you interested in?
4. What do you think of being employed? Why didn’t you choose that
path?
5. Who are your top three entrepreneur role models? Why do you want
to be like them?
6. How much do you love your job?

Bear in mind the critical factors that led to the success of these entrepreneurs.
You will be graded based on the completeness, accuracy, and presentation of your
Reference:

Diwa Senior High School

Series: Entrepreneurship