Self-Study Module: Contributions of Entrepreneurship to the Economy and Society

Introduction

This self-study module is designed to help Grade 12 students understand the various contributions of entrepreneurship to
both the economy and society. Each section will provide an in-depth explanation of a specific contribution, followed by
examples from the Philippine context.

1. Creates Employment

Explanation: Entrepreneurs play a critical role in job creation. When entrepreneurs start and run businesses, they need
to hire employees to handle various functions such as production, sales, marketing, and administration. This process
helps reduce unemployment rates and provides individuals with opportunities to develop their skills and earn a livelihood.
Employment creation also fosters a more dynamic and diverse job market, leading to economic growth and improved
living standards.

Examples in the Philippine Context:

• Jollibee Foods Corporation: Founded by Tony Tan Caktiong, Jollibee has grown into one of the largest fast-
food chains in the Philippines. It employs thousands of people across its branches, providing job opportunities in
various roles from kitchen staff to managerial positions.
• SM Investments Corporation: With its extensive retail, banking, and property operations, SM creates numerous
jobs in retail, customer service, and corporate functions throughout the country.

2. Develops New Markets

Explanation: Entrepreneurs are known for their ability to identify and exploit new market opportunities. They seek out
untapped or underserved markets where they can introduce their products or services. This exploration and expansion
help diversify market offerings and stimulate competition, which can lead to better quality products and services at
competitive prices.

Examples in the Philippine Context:

• Globe Telecom: By introducing innovative mobile services and expanding coverage to rural areas, Globe has
opened up new markets and provided connectivity to underserved regions.
• Bench: Originally a local clothing brand, Bench has successfully ventured into international markets, showcasing
Filipino fashion on a global stage.

3. Introduces Innovation

Explanation: Innovation is at the heart of entrepreneurship. Entrepreneurs introduce new or improved products, services,
or technologies that drive economic growth and improve societal welfare. Innovations can range from technological
advancements to novel business processes. This constant drive for innovation helps businesses stay competitive and
adapt to changing market conditions.

Examples in the Philippine Context:

• PayMaya: This fintech company has revolutionized financial transactions in the Philippines by offering digital
wallets and payment solutions, making financial services more accessible to the unbanked population.
• Galleon: Known for its eco-friendly packaging solutions, Galleon has introduced innovative packaging options
that address environmental concerns and cater to the growing market for sustainable products.

4. Generates New Sources of Materials

Explanation: Entrepreneurs often seek new and cost-effective sources of materials to support their businesses. This can
lead to the discovery of local or alternative materials that enhance production processes and reduce costs. By finding and
utilizing new sources, entrepreneurs contribute to economic growth and promote the development of local industries.

Examples in the Philippine Context:

 • Hapinoy: This social enterprise sources local products to support micro-retailers, helping small businesses
access affordable and high-quality materials while boosting local suppliers.
• Philippine Coconut Authority (PCA): PCA works with entrepreneurs to develop new uses for coconut products,
such as coconut-based biofuels and cosmetics, thereby expanding the market for coconut materials.

5. Stimulates Investment Interest

Explanation: When entrepreneurs start new ventures, they often attract interest from investors who are looking for
promising opportunities. This influx of investment capital helps businesses expand, innovate, and create additional job
opportunities. Increased investment in new businesses also contributes to overall economic development and growth.

Examples in the Philippine Context:

• Ayala Corporation: Known for its diverse portfolio of investments, Ayala Corporation has attracted significant
investment in sectors such as real estate, banking, and telecommunications, driving economic growth in the
country.
• Bamboo Capital Partners: This impact investment firm invests in social enterprises in the Philippines, supporting
innovative businesses that address social and environmental challenges.

6. Improves the Quality of Life

Explanation: Entrepreneurs enhance the quality of life by developing products and services that offer convenience,
efficiency, and improved standards of living. Innovations in technology, healthcare, and everyday consumer goods
contribute to better personal well-being and societal benefits.

Examples in the Philippine Context:

• Smart Communications: Through its extensive network and mobile services, Smart provides enhanced
communication options that improve connectivity and access to information for millions of Filipinos.
• Ayala Healthcare Holdings: By investing in healthcare services and facilities, Ayala Healthcare helps improve
access to quality medical care and health services across the country.

7. Serves as Role Models

Explanation: Entrepreneurs often serve as role models for aspiring business owners and the younger generation. Their
success stories and traits, such as creativity, risk-taking, and perseverance, inspire others to pursue their entrepreneurial
ambitions and contribute positively to society.

Examples in the Philippine Context:

• Henry Sy: The founder of SM Group, Henry Sy's journey from a small shoe store to a retail empire serves as an
inspiration for many aspiring entrepreneurs.
• Manny V. Pangilinan: Known for his leadership and achievements in various industries, including
telecommunications and media, Pangilinan's career exemplifies the qualities of a successful entrepreneur.

8. Brings Social Benefits

Explanation: Entrepreneurs contribute to society by paying taxes, obtaining permits, and complying with regulations. The
revenue generated from these activities supports public services and infrastructure, such as education, healthcare, and
transportation, which benefit the broader community.

Examples in the Philippine Context:

• San Miguel Corporation: This major conglomerate contributes to social development through its tax
contributions and investment in infrastructure projects, including road improvements and disaster relief efforts.
• Aboitiz Group: By supporting various social initiatives and community development programs, Aboitiz Group
helps improve access to education, health services, and environmental sustainability.

9. Utilizes and Mobilizes Indigenous Resources

Explanation: Entrepreneurs often use local and indigenous resources to support their businesses. By leveraging local
materials and resources, they reduce dependency on imported goods and stimulate the growth of local industries. This
practice helps conserve foreign currency and supports sustainable economic development.

Examples in the Philippine Context:

• Lamoiyan Corporation: Known for its oral care products made from indigenous materials, Lamoiyan supports
local supply chains and reduces reliance on imported raw materials.
• Tahanang Walang Hagdanan: This social enterprise utilizes locally sourced materials to produce mobility aids
for persons with disabilities, fostering local resource use and community development.

10. Provides More Alternatives for Consumers

Explanation: Entrepreneurs introduce a variety of products and services to the market, giving consumers more choices.
This increased competition drives businesses to innovate and improve their offerings, leading to better quality products
and services at competitive prices.

Examples in the Philippine Context:

• Sari-Sari Stores: These small neighborhood stores offer a wide range of products, providing consumers with
convenient access to various goods and fostering competition among local retailers.
• FoodPanda: By offering diverse dining options and delivery services, FoodPanda enhances consumer choices
and convenience in accessing a variety of food products.

Conclusion

Understanding the contributions of entrepreneurship helps highlight its impact on the economy and society. Entrepreneurs
drive innovation, create jobs, and improve quality of life, while also serving as role models and contributing to social and
economic development.

Practice Test: Contributions of Entrepreneurship to the Economy and Society

Instructions:

Select the best answer for each question. Each item is designed to test your understanding of the contributions of
entrepreneurship as described in the module.

1. Which of the following is a direct contribution of entrepreneurship to the economy? a. Decreasing the
number of small businesses
b. Creating employment opportunities
c. Reducing competition among existing businesses
d. Limiting market expansion
2. How do entrepreneurs typically develop new markets? a. By focusing solely on existing customer bases
b. By restricting their products to a single location
c. By seeking new buyers and exploring untapped regions
d. By avoiding technological advancements
3. What is one major effect of innovation introduced by entrepreneurs? a. Increase in outdated technologies
b. Decrease in economic wealth
c. Disruption of existing businesses and creation of new ones
d. Reduction in market competitiveness
4. How do entrepreneurs contribute to generating new sources of materials? a. By relying exclusively on
imported materials
b. By constantly searching for better and cheaper local sources
c. By decreasing the availability of local materials
d. By avoiding the use of new technologies
5. What impact does stimulating investment interest have on the economy? a. It discourages the growth of
new businesses
b. It reduces overall economic development
c. It encourages investment in new ventures, fostering economic growth
d. It limits opportunities for innovation
6. Which of the following is a way in which entrepreneurship improves the quality of life? a. By limiting
access to new technologies
b. By increasing the cost of goods and services
c. By introducing products that offer convenience and personal benefit
d. By reducing the availability of essential services
 7. How do entrepreneurs serve as role models? a. By avoiding risks and challenges
b. By exemplifying traits like creativity and risk-taking
c. By maintaining traditional business practices only
d. By focusing solely on short-term profits
8. What social benefits are derived from entrepreneurial activities? a. Increased dependence on imported
goods
b. Greater tax contributions and improved public services
c. Decreased investment in infrastructure
d. Limited access to social services
9. How does utilizing indigenous resources benefit local economies? a. By increasing reliance on foreign
materials
b. By promoting the use of local and unused resources
c. By reducing the availability of local resources
d. By focusing solely on imported goods
10. What is one way entrepreneurs provide more alternatives for consumers?a. By decreasing competition
among businesses
b. By limiting the variety of products and services available
c. By increasing competition and offering diverse choices
d. By reducing the quality of products and services
11. Which of the following best describes the contribution of entrepreneurship in terms of creating
employment? a. Entrepreneurs create jobs by hiring employees with various skills
b. Entrepreneurs reduce the number of available jobs
c. Entrepreneurs limit job opportunities to a specific industry
d. Entrepreneurs focus only on automated processes
12. In what way do entrepreneurs develop new markets? a. By targeting the same customer base
b. By expanding into new geographic or demographic areas
c. By avoiding market research
d. By limiting product variety
13. How do innovations introduced by entrepreneurs impact existing businesses? a. They lead to market
stagnation
b. They cause some businesses to close while enabling others to thrive
c. They reduce the demand for new products
d. They limit technological progress
14. What role do entrepreneurs play in generating new sources of materials? a. They focus on reducing material
costs through imports
b. They seek local and cost-effective material sources
c. They ignore new material suppliers
d. They maintain exclusive contracts with foreign suppliers
15. How does stimulating investment interest from new business ventures affect the economy? a. It results in
decreased economic growth
b. It attracts capital and supports economic development
c. It limits investment opportunities
d. It has no impact on the economy
16. In what way does entrepreneurship improve the quality of life? a. By decreasing access to modern
conveniences
b. By providing products and services that enhance daily living
c. By limiting the availability of essential goods
d. By maintaining outdated technologies
17. How do entrepreneurs act as role models for others? a. By demonstrating successful business practices and
innovative thinking
b. By avoiding challenges and maintaining conventional methods
c. By focusing only on financial gains
d. By limiting their influence to their own industries
18. What is a significant social benefit of entrepreneurial activities? a. Increased import dependency
b. Higher tax revenues used for public services
c. Decreased access to education and healthcare
d. Reduced infrastructure investments
19. How does the use of indigenous resources by entrepreneurs benefit local industries? a. By increasing
dependence on foreign materials
b. By supporting the use of local resources and reducing foreign dependency
c. By ignoring local resource availability
d. By focusing on international supply chains
20. How do entrepreneurs enhance consumer choices? a. By limiting product and service variety
b. By increasing market competition and offering more options
c. By reducing the number of available products
d. By focusing only on a single product line

Self-Study Module: Entrepreneurial Competencies

Overview
This module covers the competencies required by entrepreneurs as outlined by Camuffo, Gerli, and Gubitta (2012). These
competencies are crucial for successful entrepreneurship and are categorized into three main areas: Personal
Competencies, Managerial Competencies, and Technical Competencies.

Each section will include in-depth explanations and examples to help you understand and apply these concepts
effectively.

Personal Competencies

1. Resilience

Definition: Resilience refers to an entrepreneur’s ability to recover from setbacks and continue pursuing their goals
despite obstacles. It involves maintaining a positive attitude and adapting to changing circumstances.

Importance: Resilience is crucial for overcoming challenges, such as financial difficulties, market fluctuations, or
operational issues. Entrepreneurs with high resilience are better equipped to handle stress and maintain their focus on
long-term objectives.

Examples in the Philippine Context:

• Jollibee: The founder, Tony Tan Caktiong, faced numerous challenges in the early days of Jollibee. Despite initial
setbacks and competition from international fast-food chains, his resilience helped Jollibee become a leading fast-
food brand in the Philippines and abroad.
• Cebu Pacific: The airline faced significant challenges during economic downturns and crises. Its ability to adapt
and recover from these difficulties, including implementing cost-saving measures and exploring new markets,
showcases resilience.

2. Risk-Taking

Definition: Risk-taking involves the willingness to invest resources, time, and effort in ventures that have uncertain
outcomes. It requires evaluating potential rewards against possible risks and making decisions accordingly.

Importance: Taking calculated risks can lead to significant rewards, such as market expansion or innovation.
Entrepreneurs who take risks are often the ones who drive change and discover new opportunities.

Examples in the Philippine Context:

• Globe Telecom: The company invested heavily in expanding its network infrastructure and embracing new
technologies like 5G. This risk-taking approach helped Globe become a leading telecom provider in the
Philippines.
• BPI (Bank of the Philippine Islands): BPI's investment in digital banking platforms and fintech innovations
involved substantial risk but resulted in improved customer experiences and increased market share.

3. Proactiveness

Definition: Proactiveness refers to an entrepreneur’s ability to anticipate and act upon future opportunities and challenges
rather than reacting to them after they arise. It involves taking initiative and leading efforts to shape the future.

Importance: Being proactive allows entrepreneurs to stay ahead of competitors and seize emerging opportunities. It
helps in strategic planning and making timely decisions that can influence the success of a business.

Examples in the Philippine Context:

• Ayala Corporation: The company has been proactive in diversifying its business interests and investing in
various sectors such as real estate, telecommunications, and energy. This proactive strategy has enabled Ayala
Corporation to remain a dominant player in the Philippine market.
• Smart Communications: Smart was one of the first telecom companies in the Philippines to offer mobile internet
services, anticipating the growing demand for digital connectivity and leading the way in mobile technology.

Managerial Competencies

1. Strategic Planning

Definition: Strategic planning involves setting long-term goals and determining the best strategies to achieve them. It
requires analyzing market trends, assessing internal resources, and developing actionable plans.
Importance: Effective strategic planning helps businesses navigate complex environments, allocate resources efficiently,
and achieve sustainable growth. It aligns business activities with overall objectives and market demands.

Examples in the Philippine Context:

• San Miguel Corporation: The company’s strategic planning includes diversification into various sectors, such as
food and beverages, energy, and infrastructure, to maintain growth and stability in changing market conditions.
• Robinsons Retail Holdings: Strategic planning has enabled Robinsons to expand its retail operations across the
Philippines and internationally, adapting to market trends and consumer preferences.

2. Decision-Making

Definition: Decision-making involves evaluating options and choosing the best course of action to achieve desired
outcomes. It requires analyzing data, considering alternatives, and making informed choices.

Importance: Effective decision-making is essential for operational efficiency, financial stability, and achieving business
objectives. It impacts various aspects of the business, from day-to-day operations to long-term strategies.

Examples in the Philippine Context:

• Metrobank: Decision-making related to investments, branch expansions, and product offerings has helped
Metrobank maintain its position as one of the leading banks in the Philippines.
• Universal Robina Corporation (URC): URC’s decisions on product development, market expansion, and
acquisitions have contributed to its success in the consumer goods industry.

3. Team Management

Definition: Team management involves leading, motivating, and coordinating a group of individuals to achieve common
goals. It includes managing team dynamics, delegating tasks, and ensuring effective communication.

Importance: Effective team management enhances productivity, fosters a positive work environment, and drives the
achievement of business objectives. It is critical for maintaining team cohesion and achieving operational success.

Examples in the Philippine Context:

• PLDT (Philippine Long Distance Telephone Company): PLDT’s leadership in managing its diverse teams and
departments has been crucial in delivering innovative telecommunications solutions and maintaining market
leadership.
• Philippine Airlines: The airline’s team management practices ensure efficient operations, customer service
excellence, and effective coordination across its various departments.

Technical Competencies

1. Product Development

Definition: Product development involves creating new products or improving existing ones to meet market needs. It
requires understanding customer preferences, conducting research, and implementing innovative solutions.

Importance: Effective product development can lead to competitive advantages, increased market share, and customer
satisfaction. It is essential for staying relevant and meeting evolving consumer demands.

Examples in the Philippine Context:

• Puregold Price Club Inc.: Puregold has developed its own private label products, catering to local consumer
preferences and offering competitive pricing.
• Globe Telecom: The company continuously develops new mobile services and applications to enhance customer
experience and stay ahead in the telecom industry.

2. Market Understanding

Definition: Market understanding involves analyzing market trends, consumer behavior, and competitive dynamics. It
requires gathering and interpreting data to make informed business decisions.

Importance: A thorough understanding of the market helps businesses identify opportunities, anticipate challenges, and
tailor their strategies to meet customer needs effectively.

Examples in the Philippine Context:

 • SM Investments Corporation: SM’s market understanding has driven its expansion into retail, banking, and real
estate, addressing diverse consumer needs across various sectors.
• Bench: The fashion retailer’s market insights have enabled it to stay relevant by adapting to changing trends and
consumer preferences in the Philippine fashion industry.

3. Operational Efficiency

Definition: Operational efficiency involves optimizing processes, reducing waste, and improving productivity to achieve
business goals. It requires implementing effective systems and practices to streamline operations.

Importance: Enhancing operational efficiency leads to cost savings, improved quality, and better resource utilization. It is
crucial for maintaining competitiveness and achieving long-term success.

Examples in the Philippine Context:

• Ayala Land Inc.: The company’s focus on operational efficiency in its real estate projects has resulted in high-
quality developments and successful project completions.
• Century Pacific Food Inc.: The company’s efficient production and supply chain operations have contributed to
its growth and ability to meet consumer demands effectively.

Summary

This module has provided an in-depth look at the key competencies required for entrepreneurship according to Camuffo,
Gerli, and Gubitta (2012). Understanding and developing Personal, Managerial, and Technical Competencies will help
you navigate the complexities of running a successful business and achieve your entrepreneurial goals. Use the examples
provided to relate these concepts to real-world situations in the Philippine context.

Practice Test

1. Which personal competency involves the ability to recover from setbacks and maintain a positive attitude
despite challenges?

A. Risk-Taking
B. Resilience
C. Proactiveness
D. Decision-Making

2. What is the term for the willingness to invest resources in ventures with uncertain outcomes?

A. Proactiveness
B. Resilience
C. Risk-Taking
D. Strategic Planning

3. Which competency refers to the ability to anticipate future opportunities and act upon them rather than
reacting to events?

A. Team Management
B. Risk-Taking
C. Proactiveness
D. Product Development

4. Effective strategic planning requires setting long-term goals and:

A. Making impulsive decisions

B. Evaluating competitors’ strategies
C. Developing actionable plans
D. Ignoring market trends

5. The ability to evaluate options and make informed choices is known as:

A. Team Management
B. Decision-Making
C. Operational Efficiency
D. Market Understanding

6. Which managerial competency involves leading, motivating, and coordinating a team to achieve common
goals?
A. Strategic Planning
B. Risk-Taking
C. Team Management
D. Product Development

7. Knowledge and skills related to creating and improving products to meet market needs is referred to as:

A. Market Understanding
B. Operational Efficiency
C. Product Development
D. Strategic Planning

8. The ability to analyze market trends, consumer behavior, and competitive dynamics is known as:

A. Team Management
B. Product Development
C. Market Understanding
D. Decision-Making

9. Which competency focuses on optimizing processes, reducing waste, and improving productivity?

A. Operational Efficiency
B. Proactiveness
C. Risk-Taking
D. Resilience

10. Which of the following is NOT a personal competency according to Camuffo, Gerli, and Gubitta?

A. Resilience
B. Risk-Taking
C. Strategic Planning
D. Proactiveness

11. What is essential for successful decision-making in a business context?

A. Ignoring competitor actions

B. Making decisions based on intuition alone
C. Evaluating options and considering data
D. Avoiding risks at all costs

12. Which competency helps entrepreneurs maintain a positive outlook and adapt to changes in their business
environment?

A. Risk-Taking
B. Proactiveness
C. Resilience
D. Market Understanding

13. Effective team management is crucial for:

A. Creating new products

B. Analyzing market trends
C. Leading and coordinating a team
D. Setting long-term goals

14. In product development, entrepreneurs focus on:

A. Evaluating market trends

B. Improving operational processes
C. Creating and enhancing products
D. Analyzing competitor strategies

15. Which of the following best describes a proactive entrepreneur?

A. Someone who waits for opportunities to arise

B. Someone who acts on anticipated future opportunities
C. Someone who focuses solely on current problems
D. Someone who avoids risks in decision-making
Self-Study Module: Man and Chan's Six Areas of Competencies for Entrepreneurs

Introduction

This module aims to provide an understanding of the six key competencies identified by Man and Chan (2002) that are
crucial for entrepreneurial success. Each competency is explained in detail, with examples specific to the Philippine
context to help you grasp how these competencies apply in real-world scenarios.

1. Opportunity Competency

Explanation:

Opportunity competency involves the ability to identify and evaluate potential business opportunities. Entrepreneurs with
this competency are skilled at recognizing gaps in the market, spotting trends, and assessing the viability of new ideas.
They analyze market needs and are adept at assessing risks and rewards associated with new ventures.

Examples:

• Jollibee’s International Expansion: Jollibee, originally a local fast-food chain, identified the opportunity to
expand internationally by recognizing the growing demand for fast food among Filipinos abroad. This strategic
move allowed them to capture a new market and grow their brand globally.
• Online Shopping Platforms: Entrepreneurs in the Philippines, such as those behind Lazada and Shopee,
recognized the growing trend of online shopping. They capitalized on this opportunity by developing user-friendly
e-commerce platforms to cater to the increasing number of internet users and online shoppers.

2. Creativity Competency

Explanation:

Creativity competency is the ability to think innovatively and generate new ideas. Entrepreneurs with strong creativity skills
can come up with unique solutions, develop innovative products or services, and differentiate their businesses from
competitors. Creativity is crucial for problem-solving and driving business growth.

Examples:

• Cebu Pacific’s ‘Piso Fare’ Promotions: Cebu Pacific introduced creative marketing strategies, such as the 'Piso
Fare' promotions, to attract budget-conscious travelers. This innovative approach helped them stand out in the
competitive airline industry and increase their customer base.
• KakaoTalk’s Product Design: Filipino tech startups that create apps or products with unique features, like
KakaoTalk's distinct messaging platform, show creativity in solving communication problems in new ways, setting
themselves apart from existing solutions.

3. Management Competency

Explanation:

Management competency refers to the ability to effectively plan, organize, and control resources to achieve business
goals. It involves skills in strategic planning, team leadership, and operational management. Effective management
ensures that a business runs smoothly and efficiently.

Examples:

• SM Supermalls Management: Henry Sy’s successful management of SM Supermalls demonstrates strong

management competency. His ability to plan and oversee the expansion of shopping malls across the Philippines
shows effective use of resources and strategic management.
• Gcash’s Financial Management: The management team at Gcash effectively handles its resources and
operations to provide efficient digital payment solutions. Their strategic management ensures the platform meets
customer needs and remains competitive.

4. Resource Competency

Explanation:

Resource competency is the ability to acquire and utilize resources efficiently. This includes financial resources, human
capital, and material resources. Entrepreneurs must effectively manage these resources to ensure business sustainability
and growth.

Examples:
 • Barangay Micro-Business Enterprises (BMBEs): These small enterprises often utilize local resources and
manpower to operate successfully. An example is a small bakery using locally sourced ingredients to produce
traditional Filipino bread.
• Agri-business Ventures: Philippine agripreneurs who leverage local agricultural resources to start ventures like
organic farming or fishponds show effective resource competency by maximizing available resources to meet
market demand.

5. Financial Competency

Explanation:

Financial competency involves managing the financial aspects of a business. Entrepreneurs need to understand
budgeting, financial planning, and financial statement analysis to make informed decisions and ensure the business's
financial health.

Examples:

• BDO’s Financial Services: BDO provides financial services and tools to help businesses manage their finances
effectively. Entrepreneurs who utilize such services can better handle their business finances, ensuring long-term
success.
• Microfinance Institutions (MFIs): Philippine MFIs provide financial services to small entrepreneurs, helping
them manage their finances and grow their businesses. An example is CARD Bank, which offers micro-loans to
support small-scale businesses.

6. Networking Competency

Explanation:

Networking competency is the ability to build and maintain relationships with individuals and organizations that can
provide support, advice, or opportunities for business growth. Effective networking helps entrepreneurs gain access to
resources, partnerships, and market opportunities.

Examples:

• Startup Incubators and Accelerators: Programs like QBO Innovation Hub and Launchgarage in the Philippines
help startups connect with mentors, investors, and other entrepreneurs, fostering valuable business relationships
and growth opportunities.
• Industry Associations: Entrepreneurs who join industry associations, such as the Philippine Chamber of
Commerce and Industry (PCCI), benefit from networking opportunities that provide support, resources, and
business connections.

Study Tips

1. Review Each Competency: Take time to read through each competency and understand its importance in the
entrepreneurial context.
2. Apply Examples: Think of additional examples from your own experiences or local businesses that fit each
competency.
3. Self-Assessment: Reflect on your own skills and identify areas where you may need improvement based on the
competencies discussed.

Feel free to revisit this module as needed and use the examples provided to enhance your understanding of each
competency.

Man and Chan's Six Areas of Competencies for Entrepreneurs

Instructions: Choose the best answer for each question.

1. Which of the following best describes the ability to identify and evaluate new business opportunities?
o A. Resource Competency
o B. Opportunity Competency
o C. Creativity Competency
o D. Financial Competency
2. An entrepreneur who develops a unique product design to attract more customers is demonstrating
which competency?
o A. Management Competency
o B. Networking Competency
o C. Creativity Competency
o D. Resource Competency
3. Effective planning and leading a team to achieve business goals falls under which competency?
 o A. Financial Competency
o B. Management Competency
o C. Opportunity Competency
o D. Networking Competency
4. Which competency involves the ability to manage financial resources, including budgeting and financial
planning?
o A. Resource Competency
o B. Management Competency
o C. Creativity Competency
o D. Financial Competency
5. Using local resources and materials to reduce costs is an example of which competency?
o A. Networking Competency
o B. Resource Competency
o C. Opportunity Competency
o D. Financial Competency
6. An entrepreneur who builds strong relationships with investors and industry experts is demonstrating
which competency?
o A. Opportunity Competency
o B. Creativity Competency
o C. Networking Competency
o D. Resource Competency
7. The ability to think innovatively and come up with novel solutions to problems is known as:
o A. Management Competency
o B. Financial Competency
o C. Creativity Competency
o D. Opportunity Competency
8. Which of the following involves acquiring and effectively utilizing necessary resources like finances,
human capital, and materials?
o A. Resource Competency
o B. Management Competency
o C. Creativity Competency
o D. Networking Competency
9. An entrepreneur who systematically plans the long-term growth of their business shows proficiency in
which competency?
o A. Opportunity Competency
o B. Financial Competency
o C. Management Competency
o D. Creativity Competency
10. Which competency is demonstrated by an entrepreneur who is able to recognize market trends and
capitalize on them?
o A. Creativity Competency
o B. Resource Competency
o C. Opportunity Competency
o D. Networking Competency
11. An entrepreneur using innovative marketing strategies to differentiate their product is showcasing which
competency?
o A. Management Competency
o B. Creativity Competency
o C. Financial Competency
o D. Networking Competency
12. Which of the following refers to the ability to manage and optimize financial resources for business
success?
o A. Financial Competency
o B. Resource Competency
o C. Management Competency
o D. Creativity Competency
13. An entrepreneur who successfully negotiates and maintains relationships with key suppliers
demonstrates which competency?
o A. Networking Competency
o B. Management Competency
o C. Opportunity Competency
o D. Resource Competency
14. The capability to come up with creative solutions to operational challenges in a business is known as:
o A. Resource Competency
o B. Management Competency
o C. Creativity Competency
o D. Financial Competency
15. Which competency involves recognizing and using local resources to support and sustain business
operations?
o A. Opportunity Competency
o B. Resource Competency
o C. Networking Competency
o D. Financial Competency
Self-Study Module: Man and Chan’s (2002) Six Areas of Entrepreneurial Competencies

Subject: Grade 12 Entrepreneurship

Module Title: Understanding Entrepreneurial Competencies
Duration: 2 Days
Learning Objectives:

• Understand the six areas of entrepreneurial competencies identified by Man and Chan (2002).

• Provide real-world examples of how these competencies are applied, especially in the Philippine context.

• Analyze the importance of these competencies in achieving entrepreneurial success.

Introduction

Entrepreneurial competencies refer to the specific skills and knowledge that entrepreneurs need to manage their
businesses successfully. These competencies help them navigate the various challenges of running a business, adapt to
changing market conditions, and seize opportunities for growth. Man and Chan (2002) identified six key areas of
entrepreneurial competencies that are essential for building and sustaining a business.

In this module, we will explore these six areas and how Filipino entrepreneurs can apply them in the context of the
Philippine market.

1. Opportunity Competencies

Definition:
Opportunity competencies refer to an entrepreneur's ability to recognize and act upon business opportunities. This
involves identifying unmet customer needs, market gaps, and emerging trends that present potential for growth.

In-Depth Explanation:
Entrepreneurs must have a sharp eye for opportunities. This doesn’t just mean spotting trends but also understanding
how to turn those trends into profitable ventures. In the Philippine context, many small businesses thrive because they
capitalize on unique opportunities. For example, during the COVID-19 pandemic, many Filipinos recognized the growing
demand for home-cooked meals delivered through online platforms. Entrepreneurs who quickly adapted by launching
food delivery services or meal kits were able to survive and grow their businesses.

Example in the Philippines:

The success of Mercato Centrale, a night food market in Metro Manila, is a great example of opportunity recognition.
Recognizing the rising trend of food markets in other countries, the founders brought this concept to the Philippines,
targeting foodies looking for unique, local, and gourmet food options. Today, Mercato Centrale continues to thrive and
expand.

2. Relationship Competencies

Definition:
Relationship competencies refer to the ability to build and maintain positive relationships with customers, suppliers,
employees, and other stakeholders.

In-Depth Explanation:
Entrepreneurs need to be excellent communicators and networkers. Building strong relationships with suppliers can
secure better prices and deals, while good relationships with employees ensure that a business operates smoothly. In the
Philippine setting, where family businesses are common, relationships often extend to personal networks. Trust, respect,
and loyalty are key in maintaining long-term partnerships.

Example in the Philippines:

The relationship competency was well demonstrated by Sari-sari store owners, the backbone of Filipino retail
communities. They foster close ties with their customers by offering flexible payment terms like “utang” (credit), which
builds trust and customer loyalty. Even without large-scale advertising, these small stores thrive because of the strong
relationships built within their communities.

3. Conceptual Competencies

Definition:
Conceptual competencies involve strategic thinking, planning, and the ability to envision long-term goals. Entrepreneurs
must be able to conceptualize their business, its growth, and its market position.
In-Depth Explanation:
Strategic planning is crucial in a competitive business environment. Entrepreneurs must not only focus on daily operations
but also on where their business will be in the next 5 or 10 years. This means understanding market trends, customer
preferences, and how to position their business for long-term success. In the Philippines, conceptual competencies are
vital for navigating the country's dynamic economic landscape, which is influenced by both local and global factors.

Example in the Philippines:

Jollibee, the fast-food giant, exemplifies strong conceptual competencies. From its humble beginnings as an ice cream
parlor, Jollibee’s founder, Tony Tan Caktiong, envisioned it becoming the dominant fast-food chain in the Philippines. He
identified a gap in the market for fast food that catered to Filipino tastes. Today, Jollibee is not only the leading fast-food
chain in the country but also has a growing international presence.

4. Organizing Competencies

Definition:
Organizing competencies refer to the ability to effectively manage resources, such as human, financial, and material
resources, to ensure the smooth operation of a business.

In-Depth Explanation:
Effective organization ensures that resources are used efficiently, which is especially important for small businesses with
limited capital. Entrepreneurs need to hire the right people, manage their cash flow, and optimize their supply chain.
Organizing competencies are particularly critical in the Philippines, where many businesses are small-to-medium
enterprises (SMEs) that must carefully manage their limited resources.

Example in the Philippines:

Many successful small-scale farming cooperatives in the Philippines demonstrate organizing competencies. These
cooperatives pool resources, share farming equipment, and collectively market their products to secure better deals.
Through organized efforts, these farmers are able to increase their output, reduce costs, and improve their livelihoods.

5. Strategic Competencies

Definition:
Strategic competencies involve the ability to develop and implement strategies that allow a business to compete
effectively and grow sustainably over time.

In-Depth Explanation:
Strategic thinking involves not just reacting to current market conditions but also anticipating future trends and positioning
the business accordingly. Entrepreneurs need to be forward-thinking and adapt their business models as needed. In the
Philippine context, businesses that have successfully adjusted to the digital age have used strategic competencies to
expand and innovate.

Example in the Philippines:

During the rise of e-commerce in the Philippines, businesses like Lazada and Shopee showed their strategic
competencies by positioning themselves as leaders in the online shopping industry. They recognized the potential of e-
commerce in a market with growing internet access and adapted their strategies to offer convenient, customer-friendly
solutions such as cash-on-delivery, which appealed to Filipino consumers.

6. Commitment Competencies

Definition:
Commitment competencies refer to the entrepreneur’s perseverance and dedication to achieving their long-term business
goals, even when facing challenges and setbacks.

In-Depth Explanation:
Entrepreneurs must have the drive and resilience to overcome obstacles, such as financial difficulties, competition, and
changing market conditions. In the Philippines, where many businesses face challenges related to economic instability,
regulatory issues, and infrastructure, the ability to stay committed is essential.

Example in the Philippines:

The story of Heny Sison, a successful Filipino pastry chef and entrepreneur, reflects strong commitment competencies.
Sison faced many challenges in her journey to establish her culinary school. Despite setbacks, she persevered and is now
known as one of the top culinary schools in the country, training future entrepreneurs in the food industry.

Conclusion

Man and Chan's (2002) six areas of entrepreneurial competencies provide a comprehensive framework for entrepreneurs
to build successful businesses. By developing opportunity, relationship, conceptual, organizing, strategic, and
commitment competencies, Filipino entrepreneurs can better navigate the challenges of the business world and contribute
to the economy and society. Understanding these competencies is crucial for anyone aspiring to become a successful
entrepreneur in the Philippines.

Module Activity: Self-Assessment

• Question 1: List two examples of how opportunity competencies are applied in your local community.

• Question 2: How do relationship competencies help sari-sari store owners succeed in the Philippines?

• Question 3: Give an example of a local business that demonstrates organizing competencies and explain why.

• Question 4: Think of a successful entrepreneur in the Philippines. How did they demonstrate commitment
competencies in their business journey?

Practice Test

Multiple Choice Questions

1. Which competency refers to an entrepreneur’s ability to recognize and act upon business opportunities?
A. Relationship Competencies
B. Opportunity Competencies
C. Strategic Competencies
D. Commitment Competencies

2. Which of the following best describes relationship competencies?

A. Ability to develop and implement long-term strategies
B. Skill in managing resources such as people and finances
C. Ability to build and maintain positive relationships with stakeholders
D. Ability to envision long-term business goals

3. What does conceptual competency involve?

A. Building strong relationships with customers and suppliers
B. Developing and implementing strategies for business growth
C. Strategic thinking and planning for long-term goals
D. Identifying and acting upon market opportunities

4. Which competency involves the effective management of resources to ensure smooth business operations?
A. Commitment Competencies
B. Strategic Competencies
C. Organizing Competencies
D. Relationship Competencies

5. Strategic competencies are characterized by:

A. The ability to recognize new business opportunities
B. The ability to develop and implement long-term business strategies
C. The ability to manage and organize resources effectively
D. The ability to build strong relationships with stakeholders

6. Commitment competencies are crucial for:

A. Building and maintaining positive relationships with clients
B. Developing innovative business strategies
C. Overcoming obstacles and remaining dedicated to long-term goals
D. Identifying new market opportunities

7. Which competency is essential for developing and implementing strategies that allow a business to compete
effectively?
A. Opportunity Competencies
B. Organizing Competencies
C. Strategic Competencies
D. Commitment Competencies

8. The ability to build and sustain relationships with customers and suppliers falls under which competency?
A. Commitment Competencies
B. Conceptual Competencies
C. Organizing Competencies
D. Relationship Competencies

9. Which of the following best describes the role of opportunity competencies in entrepreneurship?
A. Creating long-term business plans
B. Recognizing and capitalizing on new market opportunities
C. Managing financial and human resources effectively
D. Maintaining relationships with stakeholders
10. What is a key aspect of organizing competencies?
A. Developing a strategic vision for the business
B. Maintaining commitment to long-term goals
C. Efficiently managing and allocating resources
D. Recognizing and acting on new business opportunities

11. Commitment competencies help entrepreneurs to:

A. Build networks and relationships with industry peers
B. Overcome challenges and stay focused on business goals
C. Develop and implement effective marketing strategies
D. Identify and evaluate new business opportunities

12. Which competency involves thinking strategically about the future and positioning the business accordingly?
A. Opportunity Competencies
B. Organizing Competencies
C. Strategic Competencies
D. Relationship Competencies

13. In which competency would an entrepreneur’s ability to efficiently manage cash flow and supply chains be
classified?
A. Commitment Competencies
B. Strategic Competencies
C. Organizing Competencies
D. Conceptual Competencies

14. The ability to stay dedicated and focused on achieving business goals despite difficulties is known as:
A. Strategic Competencies
B. Opportunity Competencies
C. Organizing Competencies
D. Commitment Competencies

15. Which competency requires an entrepreneur to recognize gaps in the market and turn them into business
opportunities?
A. Relationship Competencies
B. Strategic Competencies
C. Commitment Competencies
D. Opportunity Competencies