CAPITOL UNIVERSITY
Cagayan de Oro City
SENIOR HIGH SCHOOL
LEARNING MODULE
SUBJECT: ENTREPRENEURSHIP
ESSENTIAL TOPICS: FEATURES OF ENTREPRENEURSHIP LESSON CODE: W1L1
LEARNING OBJECTIVES: At the end of this lesson, the learner should be able to:
1. Define the word entrepreneurship,
2. Describe the salient features of entrepreneurship,
3. Determine factors that contribute to the misconceptions on entrepreneurship,
4. Describe the significance of entrepreneurship, and
5. Identify the sources of entrepreneurial ideas.
A. DEFINITION OF ENTREPRENEURSHIP
Entrepreneurship - The art of observing correct practices in managing and operating a self-owned wealth-creating
business enterprise by providing goods and services that are valuable to the customers.
B. FEATURES OF ENTREPRENEURSHIP
1. Entrepreneurship is an Art of Correct Practices.
Entrepreneurial concepts and principles are not fixed. They constantly change and are highly influenced by
the changes in the environment. The evolutionary processes happening in entrepreneurship are mainly
due to the creativity and innovation born or created from business opportunities. As new ideas created,
new entrepreneurial ventures open.
2. Entrepreneurship is a Wealth Creating Venture.
Wealth creating venture is an entrepreneurial undertaking wherein wealth is created. It is a business
endeavor where the resources of the enterprise have been utilized fully to maximize the investment of the
entrepreneur. The venture improves the life of the entrepreneur in terms of economic, financial, social,
moral, and psychological aspects.
3. Entrepreneurship provides Valuable Goods and Services.
Value is basically the opposite of waste. Products and services are considered valuable when they provide
additional benefits to the buyers and users. In entrepreneurship, value is always measured from the
perspective of the consumers. The goods and services become valuable when the customers get additional
benefits from using the products or availing of the services.
4. Entrepreneurship entails Opening and Managing Self-Owned Enterprise.
An enterprise may be categorized as an entrepreneurial venture when; it is opened a s a self-owned
enterprise and the owner manages the enterprise. Businesses or enterprises that are managed by another
person for the benefit of the owner do not fall under entrepreneurship. Such businesses are operating
under the concept of intrapreneurship.
5. Entrepreneurship is a Risk-Taking Venture.
All businesses, whether big or small, are operating within the concept of risk-taking because of
Uncertainty. Business risks cannot be eliminated. They are inherent in the venture. Entrepreneurs,
however, face the business risk instead of avoiding them. They find ways to minimize the effects if the
business risks.
C. MISCONCEPTIONS ON ENTREPRENEURSHIP
Knowing some common misconceptions on entrepreneurship will enable you to understand the concept of
entrepreneurship and differentiate it from activities of ordinary small business. A clear perspective of
entrepreneurship will provide you with a good foundation in the study of this field. These common
misconceptions on entrepreneurship include the following:
1. Entrepreneurship applies only to manufacturing business.
2. Entrepreneurship applies only to small business.
3. Entrepreneurship applies mostly to persons with good educational background in business courses.
4. Entrepreneurship applies only to a good economy.
5. Entrepreneurship applies simply opening a small business.
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D. SIGNIFICANCE OF ENTREPRENEURSHIP
1. Entrepreneurship makes the following contributions to the lives of the Filipinos:
a. It provides guidelines in their wealth-creating ventures.
b. It helps improve their financial and social life.
c. It helps broaden their creativity.
d. It helps make their lives happy, fruitful, and successful.
2. Entrepreneurship, in one way or another, makes the following contributions to the local
community.
a. It provides employment in the community.
b. It creates new demand in the market.
c. It makes substantial contribution to the raising and collection of taxes.
d. It facilitates the movement of the factors of production.
e. It creates new business opportunities.
f. It promotes a peaceful and loving community.
g. It increases constructive competition.
3. Entrepreneurship makes the following contributions to the Philippines economy.
a. It encourages competitiveness and thereby challenges entrepreneurships to keep improving their
products and services.
b. It helps find an entrepreneurial niche in the world market.
c. It helps hasten economic recovery process of the Philippines during financial turmoil or crackdown.
d. It facilitates the smooth flow of money in the local market.
e. It assists the national government in its desire to have favorable economic ratings in the world market.
Sources of Entrepreneurial Ideas
E. SOURCES OF ENTREPRENEURIAL IDEAS
Identification of
Creation of Opening of Entrepreneurial
Entrepreneurial Venture
Entrepreneurial Idea
Opportunities
Figure 1.1 The Entrepreneurial Process of Creating a New Venture.
The following are good sources of entrepreneurial ideas:
1. Changes in the environment
The external environment of a business venture:
1.1. The Physical environment:
a) Climate
b) Natural resources, and
c) Wildlife
1.2 Societal environment:
a) Economic forces,
b) Sociocultural forces,
c) Political forces, and
d) Technological environment
1.3 Industry environment
a) Government,
b) Competitions,
c) Suppliers,
d) Customers,
e) Creditors, and
f) Employees
2. Technological discovery and advancement
3. Government’s thrust, programs, and policies.
4. People’s interest
5. Past experiences
REFERENCES:
Aduana, N. (2016). Entrepreneurship in the Philippine Setting for Senior High School. C & E Publishing Inc.
Morato, Jr., E. (2017). Entrepreneurship: Vol. First Edition. Rex Book Store Inc.
