Republic of the Philippines

ISABELA STATE UNIVERSITY

Echague, Isabela

MODULE 2: THE ENTREPRENEUR

INTRODUCTION
Entrepreneurs play a key role in any economy, using the skills and initiative necessary to anticipate
needs and bringing good new ideas to market. Entrepreneurship that proves to be successful in taking
on the risks of creating a startup is rewarded with profits, fame, and continued growth opportunities.
Entrepreneurship that fails results in losses and less prevalence in the markets for those involved.

LEARNING OBJECTIVES:
At the end of this module, we will be able to:
1. Describe the entrepreneur in different situations;
2. Discuss the factors that develop entrepreneurial activity;
3. Explain the characteristics of manager and entrepreneur in solving problem;
4. Identify the personal entrepreneurial competencies of an entrepreneur; and
5. Trace how entrepreneurship developed.

LEARNING CONTENTS:
Entrepreneurship
It is the ability and readiness to develop, organize and run a business enterprise, along with any of its
uncertainties in order to make a profit. The most prominent example of entrepreneurship is the
starting of new businesses.
In economics, entrepreneurship connected with land, labor, natural resources and capital can
generate a profit. The entrepreneurial vision is defined by discovery and risk-taking and is an
indispensable part of a nation’s capacity to succeed in an ever-changing and more competitive global
marketplace.
Entrepreneur
Someone who has the ability and desire to establish, administer and succeed in a startup venture
along with risk entitled to it, to make profits. The best example of entrepreneurship is the starting of
a new business venture. The entrepreneurs are often known as a source of new ideas or innovators,
and bring new ideas in the market by replacing old with a new invention.
It can be classified into small or home business to multinational companies. In economics, the profits
that an entrepreneur makes is with a combination of land, natural resources, labor and capital.
In a nutshell, anyone who has the will and determination to start a new company and deals with all
the risks that go with it can become an entrepreneur.
 Republic of the Philippines
ISABELA STATE UNIVERSITY
Echague, Isabela

A. THE ENTREPRENEUR AS A MISSIONARY

1. A Closer Look at an Entrepreneur

Great entrepreneurs 'are missionaries'.

What makes a great entrepreneur? According to Silicon Valley venture capitalist John Doerr, the best
ones "are missionaries, not mercenarias."

ENTREPRENEUR ACCORDING TO KOMISAR

Mercenary Missionary

Komisar identifies a mercenary business culture Komisar's account of missionary business

with a 'drive' mentality, focusing on financial leaders suggests a more expansive approach to
statements and short-term results. These leaders building a company, prioritizing long-term
are opportunistic, obsessive in comparison to strategic partnerships and fostering a
competition, and maintain their vision through meritocracy. These leaders prioritize long-term
aristocracy or autocracy. They lack a genuine contributions, such as Nike's efforts to inspire
purpose and often work towards their post-work and innovate. They prioritize long-term success
lives, having earned enough money to abdicate and benevolent goals, aiming to elevate their
their executive throne. company's purpose beyond financial success.

Note: Key Terms for Mercenary Note: Key Terms for Missionary

 Pera-pera lang  Create business to help

 Short-term solutions  Create long-term solution
 See other businesses as a threat  See other’s growth and inspiration
 Lack of purpose  Driven by purpose and goal

2. The Entrepreneur as Goal Driven

Entrepreneurs prioritize goal-driven success over money, finding opportunities in problems.

Happiness comes from helping others and making a difference. Quality of life is determined by the
people involved, and meeting successful people helps learn and grow.

3. The Entrepreneur as a Marketing Man

An entrepreneur wears multiple hats, not only focusing on building their business but also actively
engaging in promoting and selling their products or services. He is not solely focused on the product
or service itself but also on how to effectively reach his target audience and create a demand for what
they offer.
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ISABELA STATE UNIVERSITY
Echague, Isabela

Characteristics:

• Proactive orientation

Continually searching for new ways to achieve competitive advantage through changes in established
methods in marketing or production.

Note: An entrepreneur is always looking for ways to improve their business, even if they're already
doing well. They're not content with just selling what they have. They're constantly looking for new
ways to get better, like a volleyball team that's always striving for the championship.

• Utilizing an opportunity

Recognizing and pursuing opportunities, which are new goods, services, raw materials, and methods
introduced through means-end relationships.

Note: Entrepreneurs are always looking for opportunities to grow their business. They might spot a
new trend, a gap in the market, or a chance to expand. They're willing to take a chance if they think it
will lead to success.

• Innovativeness

The ability to maintain a flow of new ideas that can translate into new products or services.

Note: They're constantly coming up with fresh ideas for their business. They might invent a new
product, find a better way to do something, or create a unique marketing campaign. They're always
thinking outside the box!

• Risk management

Calculated risk-taking, identifying and controlling risk factors, with entrepreneurial marketing
playing a crucial role in managing risk within the entrepreneurial firm.

Note: Entrepreneurs are not afraid of taking risks, but they're not reckless either. They carefully
weigh the risks and benefits before making a decision. They might try a new marketing strategy, but
they'll also have a backup plan in case it doesn't work out.

• Focus on the costumer

An entrepreneurial firm is focused on the need for creative approaches to acquire, retain, and develop
customers.

Note: Entrepreneurs understand that their customers are the heart of their business. They listen to
what their customers want and try to give it to them. They are creating products or services that
people really want, need, and love, in that way they their customers will be satisfied.
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ISABELA STATE UNIVERSITY
Echague, Isabela

• Value creation

Entrepreneurial marketing emphasizes innovative value creation as a crucial aspect, as it is a

prerequisite for transactions and relationships.

Note: Entrepreneurs like to create products or services that people really want and are willing to pay
for. They're not just selling something for profit, instead they're trying to create something valuable
that improves people's lives.

4. Entrepreneur Starts Small to Become Big

Small business owners may dream of becoming Amazon or Apple, but they can still think big despite
facing large companies with resources and resources. Just think big.

Note: Sa una, karamihan sa mga matagumpay na negosyante ay nagsisimula sa maliit, pwedeng

maliit na puhunan, limited tools, or kahit maliit na space para sa puhunan. Pero sa pamamagitan ng
hardwork, good desicon-making, at tiyaga, the business grows and eventually becomes large.

Sa Filipino culture, there's a common saying “kapag may tiyaga, may nilaga" which means, if you
work hard, you will get rewards. Ipinapakita nito na sa pamamagitan ng pagtitiyaga at hardwork,
maaaring lumago ang isang business from simple idea patungo sa tagumpay.

Many entrepreneurs in the Philippines starts with small ventures, like sari-sari store, market stalls, or
even online shops. Habang lumalago ang kanilang business, nadadagdagan ang kanilang experience
at dahil dito nagkakaroon sila ng mga bagong diskarte at lumalawak ang kanilang network. These
small ventures lead to bigger profits and success.

You may wonder how can you make it against large companies that seem to have the people and
resources to do the things you can't do. Just because your business is small, that doesn't mean you
can't think big.

Four ways to grow your business without a big budget:

 Find your niche

Big businesses tend to appeal to wide, general customer bases. As a result, customers with more
specific needs are left out, because there's not enough profit potential focus a big company to cater to
those customers' needs. However, a small but eager customer base can be perfect for a smaller
business.

Note: Isa sa pinaka effective na way upang mapalago ang small business without a big budget is by
focusing on a specific niche instead na mag benta sa lahat ng tao, mas magandang malaman mo kung
sino talaga ang yong target na audience or customer and serve them well. Specializing your niche
gives your business a competitive advantage because you can tailor your products or services to meet
the specific needs of your customers.
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ISABELA STATE UNIVERSITY
Echague, Isabela

Niche-is a space that's all your own, from a literal corner or enclosure to some kind of professional
specialty.

 Put your efforts into innovating

One way to innovate an industry is to find a problem that most businesses are ignoring. Don't be
afraid to solve the hard problems that everyone else avoids. There is a lot of money to be made when
you're the first person to fix something.

Note: Ang innovation ay isang paraan upang lumago ang business, kahit na maliit lang ang budget.
Hindi mo kailangang gumastos nang malaki para mag innovate: Sometimes, small changes in how
you deliver products or services can make a big impact.

 Plan for growth

If you think big; you have to anticipate expansion, that might mean having some general plans in
place for taking on more employees, setting up checklists and procedures to ensure quality control,
and investing in products and equipment that will grow with you.

Note: Mahalaga na hahit maliit pa ang negosyo, may malinaw kang plano para sa paglago nito.
Running a business without a clear blueprint can limit your potential. Having a growth plan helps
you identify short term and long-term goals, making sure you're always moving forward. Having a
clear plan gives your business direction and purpose.

 Don’t do it yourself

It takes an independent streak and a do-it-yourself attitude to stan your own business, but that doesn't
mean you have to do everything on your own. For example, partnering with a business that handles a
specific task and sharing the profits lets you keep your focus on what you do best while getting a big
project done.

Note: Running a small business doesn't mean you have to this everything on your own. Mahalaga
ang pagtitiwala sa mga tao o serbisyo na makakatulong sayo, lalo na sa areas na hindi mo gamay.
This allows you to focus on the core aspects of your business that drive growth.

B. THE SEVEN ENTREPRENEURS (who started small and built their way to success)

1. Howard Schultz

 Known for building the global brand Starbucks

 He started as an employee of the company
 In 1982, he joined the Seattle-based company as director of retail operations and
marketing
 Republic of the Philippines
ISABELA STATE UNIVERSITY
Echague, Isabela

 In 1983, he took a trip to Italy where he discovered that Milan alone boasted 1,500 coffee
house which he envisioned starting a national coffee chain in the U.S and he quit
Starbucks to start his own company called IL Giornale
 In 1987, he bought Starbucks and began to grow it.
 -However, he stepped down from the CEO role in 2000 to focus on international
expansion as global chief strategist and chairman.
 In 2022, he returned as an interim CEO and as a board member

2. Ralph Lauren

 Founder of Ralph Lauren

 He used to work as a sales assistant at brooks brothers while taking business classes at
night
 While working for a tie company, he was inspired to begin designing his own neckwear
and in 1967 he marketed his unique line of ties under the name POLO and grossed
500,000 (Dollars) in sales the first year.
 He won numerous awards such as:

1. Menswear designer of the year (1996,2007)

2. Womenswear Designer of the year (1995)
3. Fashion legend award (2007)

 In 2015, he announced that he will step down as CEO but he remained as Executive
chairman and chief creative officer.

3. Sophia Amoruso

 An entrepreneur, author and a former CEO of nasty gal

 She started by rummaging through the racks at second-hand stores and then began selling
her vintage clothing fines on eBay and she utilized her network on the social media site
"my space" to promote her online store.
 She admits no strategy but willing to take a chance and pursue something she was
passionate about.

4. Daymond John

 Founder of the brand FUBU

 He started in his clothing line using sewing machine at his mother's house in Queens,
New York.
 FUBU grew into a global brand and went on to invest in dozens of other companies such
as: Funky Mello, and SlimeyHoney
 He's also the author of four books and owns a coworking space in Manhattan
 Right now, he's working as an investor on the hit show ABC Reality Show: Shark Tank.

5. Sam Walton
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ISABELA STATE UNIVERSITY
Echague, Isabela

 Founded Walmart
 Opened his first store with almost nothing to his name. He purchased a Ben Franklin
franchise in Newport, Arkansas using a $25,000 loan from his father-in-law.
 Walton ran the business w/ his younger brother and successfully grew the franchise to
own 15 different stores but the company that managed the franchise chain was unwilling
to expand into rural area which made him start his own business.
 In 1962, he opened Walmart and quickly became successful
 He stepped down as CEO in 1988 but remained as company chairman but he sadly died in
1992.
 He established 1735 Walmarts, 212 Sam’s club and 133 supercenters w/ of 380,000
employees and annual sales of almost 50 billion dollars.

6. Kevin Plank

 Founder and the former CEO of Under Armour

 He started the company Under Armour with his personal savings and five different credit
cards. With a year of starting the company, he was broke and in tons of credit card debt.
 His big break came when he sold his clothing to Georgia tech for 17,000 (Dollars) then
his product began to take off and was used by NFL teams and picked up by Major
retailers
 Today, Under Armour is a 4-billion-dollar brand

7. Sara Blakely

 Founder of Spanx
 She was selling Fax machines door-to-door. She used 5000 (dollars) of her savings to
start the company and bootstrapped her way to success.
 Until this day, she's never taken on any funding and owns 100% of the company
 In 2012, she became the World's Youngest Female Self-Made Billionaire
 She cautions new entrepreneurs not to look to friends and family to validate their business
idea; She stated "Can stop a lot of multi-million-dollar ideas in their track in the
beginning."

C. PERSONAL ENTREPRENEURAL COMPETENCIES OF AN ENTREPRENEUR

 Opportunity-Seeking and Initiative

First up is opportunity-seeking and initiative. Picture this: entrepreneurs are like treasure hunters,
always on the lookout for hidden gems in the market. They don’t wait for opportunities to knock;
they actively seek them out and grab them!

Ex. For example, Mark Zuckerberg created Facebook to connect people, spotting a need for social
interaction online.

 Persistence
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ISABELA STATE UNIVERSITY
Echague, Isabela

Next is persistence. Think of it as the “never-give-up” spirit. When others might throw in the towel,
successful entrepreneurs dig in their heels and keep pushing forward. It’s their determination that
often leads to breakthroughs.

Ex. Think of Thomas Edison, who failed many times before inventing the light bulb. His
determination eventually led to success.

 Commitment

Now, let’s talk about commitment. Imagine being so dedicated to your vision that you’re willing to
make sacrifices to achieve it. That’s what entrepreneurs do! Their promise to themselves and their
teams creates a strong foundation for success.

Ex. Commitment is crucial. Elon Musk is committed to making electric cars popular with Tesla,
sticking to his vision even when faced with challenges.

 Demand for Efficiency and Equality

Then we have the demand for efficiency and quality. Entrepreneurs are constantly looking for ways
to improve their products or services. They want to deliver the best, faster, and at a better price. It’s
all about standing out in a crowded market!

Ex. Then, we have the demand for efficiency and quality. Steve Jobs focused on making Apple
products user-friendly and stylish, which helped the company succeed.

 Take Calculated Risks

Taking calculated risks is essential. Think of entrepreneurs as skilled tightrope walkers, carefully
balancing potential rewards against possible setbacks. They don’t just leap into the unknown; they
weigh their options and make informed decisions.

Ex. Taking calculated risks is important. Richard Branson launched Virgin Atlantic despite knowing
the airline industry is risky. He believed in his idea and made it work.

 Goal Setting

Goal setting is like having a roadmap. Entrepreneurs set clear, ambitious goals that guide their
journey. Without these goals, it’s easy to get lost, but with them, they stay focused on where they
want to go.

Ex. Goal setting is like having a map. Oprah Winfrey set goals for her media career, starting with her
talk show and expanding into books and a network.

 Independence and Self-Confidence

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ISABELA STATE UNIVERSITY
Echague, Isabela

Information seeking is another crucial trait. Entrepreneurs are like detectives, gathering valuable
insights about their customers, competitors, and trends. This knowledge helps them stay ahead of the
game and making smart choices.

Ex. Information seeking is vital too. Howard Schultz of Starbucks studied coffee culture and
customer preferences to create the perfect coffee shop experience.

 Systematic Planning and Monitoring

Next is systematic planning and monitoring. Imagine building a house: you need a solid plan and
regular checks to ensure everything is on track. Entrepreneurs do just that with their business
strategies, keeping everything organized and efficient.

Ex. Next is systematic planning and monitoring. Walt Disney planned Disneyland carefully, making
sure every detail was perfect for visitors.

 Persuasion and Networking

Persuasion and networking are vital skills, too. Entrepreneurs are like charismatic leaders, inspiring
others to believe in their vision. They build strong networks that open doors to new opportunities and
collaborations.

Ex. Persuasion and networking are essential. Sara Blakely, founder of Spanx, built relationships with
retailers to get her product into stores, convincing them of its value

 Information Seeking

Finally, independence and self-confidence are key. Successful entrepreneurs trust in their abilities
and are ready to take bold steps. This self-assurance empowers them to innovate and make their
mark in the world.

Ex. Finally, independence and self-confidence are key. Michelle Phan, a beauty YouTuber, believed
in her makeup tutorials, which led her to create a successful beauty brand

Conclusion

In summary, these traits—opportunity-seeking, persistence, commitment, demand for efficiency,

calculated risk-taking, goal setting, information seeking, planning, persuasion, networking,
independence, and self-confidence—are the building blocks of entrepreneurial success. By
developing these skills, you can enhance your chances of achieving your business dreams.

D. THE MAKING OF AN ENTREPRENEUR

 Republic of the Philippines
ISABELA STATE UNIVERSITY
Echague, Isabela

“Some entrepreneurs are born, others are made. Sometimes an entrepreneur simply needs someone
to help them focus their genius.”

What does it mean? Do you agree on this statement?

Note: The statement "Some entrepreneurs are born, others are made. Sometimes an entrepreneur
simply needs someone to help them focus their genius" means that:

1. Some people are naturally good at starting and running businesses (born entrepreneurs) – They
have the skills and mindset from a young age, like being creative, determined, or good at spotting
opportunities.

2. Others learn how to be entrepreneurs over time (made entrepreneurs) – They might not start out
with these natural abilities, but they develop the skills through experiences, education, and practice.

3. Everyone, even the most talented, can benefit from help or guidance – Sometimes, a person might
have a great idea or skill but needs someone to help them focus, plan, or organize it into a successful
business.

How To Become an Entrepreneur?

• Know your purpose

Before starting a business, figure out what you’re passionate about. What do you enjoy doing? What
problems do you want to solve? Knowing your purpose will help you stay motivated and focused as
you build your business.

• Make a goal

Set clear goals for your business. Where do you want to take your business in the next year or five
years? Having a goal helps you stay on track and gives you something to work toward.

• Be bigger than yourself

Think beyond just selling products or services. How can your business impact others or the
community? A successful entrepreneur looks at ways to grow their business to a larger scale.

• Advertise outside the box

Let people know about your business. You can use social media, websites, or even local events to
promote what you do. Cait started with social media, which helped her get a lot of customers early
on. Be creative with your marketing and business strategies. Try new ideas that will make your
business stand out.

Note: By following these steps, you can develop the mindset and strategies to become a successful
entrepreneur, even if you're starting small.
 Republic of the Philippines
ISABELA STATE UNIVERSITY
Echague, Isabela

E. THE MAKING OF FILIPINO ENTREPRENEURS

Entrepreneurship is not only about escaping from your office cubicle, starting a business. making
some profit, and becoming your own boss. Being an entrepreneur requires more than just courage,
more than just getting rich, and more than just creating a unique product. There are already a number
of famous Filipino entrepreneurs and business people that have shaped our nation. They've inspired
us through their rags-to-riches stories.

HOW CAN A FILIPINO BE A REAL ENTREPRENEUR?

1. Create a solution

Real entrepreneurship is the ability of creating a product that will solve a lot of people's problems.

NOTE: To be a real entrepreneur, you don't just create a product in order to make a profit. Well, if
you know some math or accounting, it's easy to increase your sales or decrease your expenses to
make a profit. Real entrepreneurship is the ability of creating a product that will solve a lot of
people's problems. A Filipino entrepreneur should not just focus on making money for himself, but
he should concentrate on creating and revolutionizing a product that will solve the problems of many
Filipinos.

2. Make sacrifices

An aspiring entrepreneur should sacrifice things, such as his precious time, great effort, and even
money or opportunities to make money.

NOTE: To become a successful entrepreneur, especially dito sa pilipinas, sacrifices are essential.
These sacrifices are often made in terms of time, personal comfort, and financial security.
Entrepreneurs understand that sa pagtayo ng business ay nangangailangan ng long hours, hard work
and sometimes, the need to give up social activities or personal time with family to focus on their
venture.

3. Create quality jobs

Entrepreneurs should help their own country by providing more quality jobs to decrease the rate of
unemployment in that country.

NOTE: After developing oneself, an entrepreneur should also develop other people by creating a
team and be a good manager to them. Hiring people should not only be done to help a business boost
its productivity and generate more revenue, but it should also be done to help these people grow their
lives professionally and economically.

Entrepreneurs should help their workers have better lives and build a better future for their family.
By helping in building more progressive workers or employees, as well as their families,
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ISABELA STATE UNIVERSITY
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entrepreneurs can also help in building a more progressive country. Remember that to develop a
nation, we have to develop every family and household in that nation.

4. Bring honor to your nation

A good Filipino entrepreneur should not just create a product or provide a service that can compete
with the best in the Philippines, but also in the world.

NOTE: A Filipino entrepreneur should aim to create a top-notch business that competes globally, not
just locally. This means offering unique and high-quality products or services. Success also comes
from good management, effective marketing, and strong community relationships. By focusing on
these areas, entrepreneurs can build trust and pride, showcasing Filipino talent to the world.

5. Influence people

A genuine entrepreneur could transform people, even the world because he was able to transform
himself in the first place.

NOTE: Finally, an entrepreneur should not only be a person of great vision and goals, but he must be
person of actions and results — and these results should be those that could 'inspire many people. A
real entrepreneur has to create a product that contains a solution -- a solution that brings honor—an
honor that transform people.

SUMMARY:

An entrepreneur is an individual who takes an idea or product and creates a business, a process
known as entrepreneurship. Creating a business requires a lot of work and dedication, which not
everyone is cut out for. Entrepreneurs are often young, highly motivated risk-takers who have a
vision and often sacrifice a lot to achieve that vision.

Entrepreneurs enter the market because they love what they do, believe their product will have a
positive impact, and hope to make profits from their efforts. The steps entrepreneurs take fuel the
economy; they create businesses that employ people and make products and services that consumers
buy today.

Again, remember that entrepreneurship is not all about money, fame or recognition. But it is all
about transformation — a positive, powerful, and helpful transformation that council build not only
the wealth of one or few persons, but the wealth of the nation. This transformation should begin from
you.

“In the world of business, the people who are most successful are those who are doing what they
love.”
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ISABELA STATE UNIVERSITY
Echague, Isabela

- Warren Buffett

RESOURCES AND LEARNING MATERIALS:

 Copy of PPT: Copy of MODULE 2 Entrepreneur - Presentation (canva.com)

 Introduction to entrepreneurship: What is Entrepreneurship? Meaning, Types, Characteristics,
Importance (byjus.com)
 Learning material: Module 2: The Entrepreneur PDF
 Entrepreneur: What It Means to Be One and How to Get Started (investopedia.com)
 What is entrepreneurship? | Stanford Online
 Niche - Definition, Meaning & Synonyms | Vocabulary.com

REFERENCES:

Abrugar, V. (n.d.). How to be an Entrepreneur in the Phillipines. Retrieved from

https://businesstips.ph/how-to-be-an-entrepreneur-in-the-philippines/

Are you an entrepreneurial missionary or mercenary? (n.d.).

The Making of An Entrepreneur. (n.d.)