ENTREP

FINALS: FIRST SEMESTER REVIEWER

 For ordinary business owners, wealth=profit
CORE CONCEPTS OF ENTREPRENEURSHIP  According to accounting, profit is the excess
income or revenue from the cost and expenses
 According to Random House Webster’s Dictionary,
FAMOUS ENTREPRENEURS
wealth is the abundance of money, property, or
possession.
HENRY “TATA” SY  In entrepreneurship, it is the concept of abundance
 Founder of SM which is the very essence of the entrepreneurial
 SM for “Shoe Mart” endeavor
 Started from selling shoes  Resources should be utilized to maximize the
investment of the entrepreneur
TONY TAN  It improves the life of the entrepreneur in terms of
 Founder of JOLLIBEE economic, financial, social, moral, and
 Started as an ice-cream parlor psychological aspects

MARIA SOCORRO “CORING” CANCIO-RAMOS ENTREPRENEURSHIP PROVIDES VALUABLE GOODS

 Founder of NATIONAL BOOKSTORE AND SERVICES
 Worked in Goodwill Bookstore and met the son of  The mere act of selling goods or providing services
the Owner (Jose Ramos) does not make a person perform or act within the
 Together, they founded National Bookstore concept of entrepreneurship.
 Entrep creates economic wealth by providing
MANNY VILLAR goods and services to the consumers.
 Successful businessman in REAL ESTATE  They must have value in order to create wealth.
 Richest man in the Philippines  One essential principle of entre is, “not to sell
 Worked as an accountant waste to consumers but only valuable goods and
 Former politician (President of the Senate) services.”
 Anything of no value to anybody is a waste.
ELPIDIO PARAS  Valuable goods and services highly satisfy the
 Founded famous recreational attractions like target buyers in terms of quality and price.
DAHILAYAN  Consumers must be convinced that they gain more
 Founder of Seven Seas benefits than what they pay for the goods and
services.
WHAT IS ENTREPRENEURSHIP?  Value should always be defined from the
 Is the art of observing correct practices in perspective of the buyers.
managing and operating a self-owned, wealth-
creating business enterprise. ENTREPRENEURSHIP ENTAILS OPENING AND
MANAGING THE SELF-OWNED ENTERPRISE
 A business must be self-owned to qualify as an
SALIENT FEATURES OF ENTREPRENEURSHIP entrepreneurial endeavor.
 A business is self-owned when the person
 Provide better understanding of the whole concept managing its daily activities is also its owner.
 Act as a reference point in determining whether a  Intrapreneurship is involved when a business is
business endeavor is operating within the realm of being managed by others for the benefit of the
entrepreneurship owner.

ENTREPRENEURSHIP IS AN ART OF CORRECT ENTREPRENEURSHIP IS A RISK-TAKING VENTURE

PRACTICES  “Risk is inherent in an entrepreneurial venture.”
 An art and not science  Once an entrep venture is born because of new
 Not governed by fixed and absolute rules ideas/opportunities, risk comes simultaneously
 Constant change denoting movement and with the venture.
innovation  Risk cannot be detached from the venture unless
 Art that continuously grows, develops, improves, you close the venture.
and expands in response to the needs of the  However, closing the business means giving up on
people becoming a successful entrepreneur.
 Dynamic because it changes along with the  So, closing the business is not the answer.
political and social activities when the economic  Risk In entrep is called business risk.
activity changes  Entrepreneurs operate within the concept of risk-
 Creativity causes change which results in new taking because of uncertainty.
ideas which is the backbone of entrepreneurship
 The evolutionary processes happening in WHAT IS AN ENTREPRENEUR?
entrepreneurship are mainly due to the creativity  Person who strongly advocates and correctly
and innovation born from business opportunities. practices the concepts and principles of
entrepreneurship in managing and operating a
self-owned entrepreneurial venture.
ENTREPRENEURSHIP IS A WEALTH-CREATING
VENTURE
 ENTREP
FINALS: FIRST SEMESTER REVIEWER
 Entrepreneur considers risk as inherent in the
IMPORTANCE OF ENTREPRENEURSHIP
business venture, prepares the business for it, and
finds ways to minimize its effects.
 The benefits derived from entrepreneurship are  Owner of an ordinary small business believes that
compounded from one level to the next. the business risk is a deterrent to the operation of
 It produces a chain of progressive results the business and must be avoided.

REACTIONS TO CHANGES IN THE ENVIRONMENT

 Entrepreneur reacts positively to the changes in
the environment because it brings new ideas for
entrepreneurial opportunities. They outline
alternative courses of action in anticipation of the
changes to happen.
 Owner of an ordinary small business remains
passive and static to changes in the environment
where his or her business operates. It is not a plus
factor but a source of negative consequences.

VIEW ON COMPETITION
 Entrepreneur sees the presence of competition as
a sign of healthy economic environment because it
forces entrepreneurs to continuously improve their
IMPORTANCE TO THE FILIPINO PEOPLE present products or services. It causes them to get
1. It provides guidelines in their wealth-creating creative.
ventures  Owner of an ordinary small business believes that
2. It helps improve their financial and social life. competition is an unhealthy element of the
3. It helps broaden their creativity. business environment.
4. It helps make their lives happy, fruitful, and
successful. VISION FOR DEVELOPMENT AND GROWTH
IMPORTANCE TO THE LOCAL COMMUNITY  Entrepreneur outlines the course of his or her
1. It provides employment in the community. entrepreneurial venture in terms of short-term,
2. It creates new demand in the market. medium-term, and long-term plans of action. He
3. It makes substantial contributions to the raising makes sure that the vision and mission is clear.
and collection of taxes.  Owner of ordinary small business relies upon
4. It facilitates the movement of the factors of chance or luck in maintaining the status quo of his
production. or her business. He is not concerned about
5. It creates new business opportunities. development and growth as long as he or she is
6. It promotes a peaceful and loving community. satisfied with its earnings.
7. It increases constructive competition.
IMPORTANCE TO THE PHILIPPINE ECONOMY HORIZON OF BUSINESS OPERATION
1. It encourages competitiveness and thereby  Entrepreneur thinks globally but acts locally. He or
challenges entrepreneurs to keep improving their she is concerned with the major economic events
products and services. not only in the local environment but also in the
2. It helps find an entrepreneurial niche in the world global business market. Has both local and global
market. perspective and thinks that the venture will be
3. It helps hasten the economic recovery process of going out of the local market and will face healthy
the Philippines during financial turmoil or crisis. competition in the international market,
4. It facilitates the smooth flow of money in the  Owner of an ordinary small business is centered
market. only on the local environment. He or she does not
5. It assists the national government in its desire to intend to participate in the global environment.
have favorable economic ratings in the world Expansion is not an idea worth entertaining.
market.
SOURCES OF BUSINESS FUNDS
ENTREPRENEURSHIP AND ORDINARY SMALL  Entrepreneur finds ways to generate the much-
BUSINESS ACTIVITIES needed funds from both internal and external
resources. He or she believes that the venture
MOTIVE IN OPENING A BUSINESS may create a wealth enough to compensate for the
 An entrepreneur starts a business venture based sourced funds.
on entrepreneurial concept and principles and the  Owner of an ordinary small business tends to limit
aspiration to become successful. the funding to personal resources. He or she fears
 Owners of ordinary small business opens a that financial institutions will not be willing to
business to make it his or her source of livelihood. extend financial assistance to the business. He or
 Motive of earning a profit. she is convinced that the endeavor is an
PERCEPTION OF RISK IN THE BUSINESS unprogressive type.

CORE COMPETENCIES IN ENTREPRENEURSHIP

 ENTREP
FINALS: FIRST SEMESTER REVIEWER
o Take repeated or different actions in
order to overcome the obstacles
o Make personal sacrifices or exert
extraordinary effort to complete the
required task
o Stick to his or her own judgement in times
of opposition and failure
o Should exhaust all possible means to
keep their businesses afloat in the market
o Foundation of commitment
o doesn’t consider quitting as the final
ENTREPRENEURIAL CHARACTER TRAITS recourse
o takes another action when the first plan
WHAT ARE CHARACTER TRAITS? fails and finds a way to make it through
 Refers to the mark or attribute that distinguishes
an entrepreneur from the owner of an ordinary 4. RISK-TAKER
small business. o Types of risk-takers
 Based on studies conducted by the Small a. Aggressive risk-taker is not
Enterprise Research and Development Foundation scared to take any risks in
(SERDF) of the Department of Trade and Industry, business
there are ten entrepreneurial characteristics b. Moderate risk-taker is more
grouped into 3 major clusters: calculative in taking risks. He or
1. Achievement cluster she analyzes the situation
2. Planning cluster before taking the leap
3. Power cluster c. Conservative risk-taker is not
very eager to take any kind of
ACHIEVEMENT CLUSTER risk. He or she is satisfied in
 Consists of entrepreneurial traits that are related to managing a small business and
the entrepreneur’s desire to be an achiever in the a regular clientele
field. He/she does not settle for mediocrity but o An entrepreneur weighs the pros and
instead aspires for quality. They are achievers by cons of a particular business opportunity
nature and they strive to achieve. before taking the risk
o An ordinary small business owner takes
1. OPPORTUNITY-SEEKER the risk in all instances without
o Ability to identify the most appropriate considering the consequences
entrepreneurial opportunities. o takes chances; takes calculated risks
o Acts on new business opportunities o evaluates thoroughly the pros and cons
o Seizes unusual opportunities to obtain before engaging in an endeavor
financing, equipment, land, work, space, o has alternative courses of action in case
or assistance. of failure
o will borrow and act on the business ideas
of others. 5. EFFICIENT AND QUALITY-ORIENTED
 o Always performs the required tasks in
2. COMMITTED accordance with existing standards of
o Accepts full responsibility for what has excellence or continuously improves on
been promised to the customers his or her past performance
o Establishes proper coordination with and o Strives to do things better and faster with
among workers, so that goods and minimal cost
services are delivered as promised o Efficiency is to Incur the minimal cost in
o Seeks to prioritize the satisfaction and production of goods and services without
interest of customers sacrificing quality to make them
o Directly related to interest. Lack of competitive in the market
interest=lack of commitment o Produces more output using less input
o Going the extra mile is the very essence o Successful entrepreneurs are productive
of commitment o Quality deals with defect. There should
o For an ordinary small business owner, be zero defects in their products and
going an extra mile is a burden. services
o accepts full responsibility in the event o adopts a standard that will serve as a
problems are encountered basis for performance evaluation.
o can work harmoniously with workers so o evaluates past performance for
jobs are completed on time improvement
o takes satisfying customers as primary o exerts extra effort to do things better and
concern faster
3. PERSISTENT o eliminates the production of defective
goods.
 ENTREP
FINALS: FIRST SEMESTER REVIEWER
PLANNING CLUSTER o He gathers all the qualitative and
 Set of characteristics of successful entrepreneurs quantitative information before
that basically supports the character traits in the formulating the plans
achievement cluster. o Develops a logical step-by-step approach
1. GOAL-SETTER in the formulation of plans
o Basic concept of planning is setting goals o Monitor the progress of activities and
and objectives. They guide and direct all switches to alternative strategies when
actions, efforts, and struggles of the deemed necessary
entrepreneur. o Evaluates constantly the alternatives in
o Set clear, specific, and well-defined short achieving the goals
and long-term goals and objectives POWER CLUSTER
o Goals are long-term while objectives are  Set of character traits that reflect the degree of the
short-term interpersonal relations maintained by successful
o Entrepreneurs are guided by the SMART entrepreneurs in the community.
principle  It establishes the relationships of the
o Goals and objectives are Specific, entrepreneurs with the suppliers of raw materials,
Measurable, Achievable, Realistic, and financial institutions, customers, competitors, the
Time-bound. government, employees, and all other
o Never engage in a business enterprise stakeholders
unless the goals and objectives are 1. PERSUASIVE AND POSITIVE NETWORKER
definite and clear o Successful entrepreneurs are persuasive
2. INFORMATION-SEEKER and can easily influence and win over to
o Decisions must not be based on whims their side the other stakeholders in
and caprices but on specific and relevant business such as customers, suppliers,
economic, financial, and industry data. and prospective creditors.
o Need a strong basis to make sound o They are able to establish good and
decisions positive networking with almost all of the
o Entrepreneur has to exhaust all possible players in the business community.
means so that the desired information will o Discard the concept of bribery in dealing
be completed. with people.
o They seek relevant information on target o Adopts specific strategies that will
customers, suppliers of raw materials, influence and convince others while
and competitors maintaining the highest degree of respect
o Verifies available information from various o Makes use of positive contacts in the
sources, both private and public, like business community in order to meet the
printed materials and agencies goals and objectives of the business
o Seeks opinions and advice from experts endeavor
in the business field o can increase personal linkages.
o Finds other possible ways to make sure 2. SELF-CONFIDENT
that the desired information is complete o Entrepreneurs are known to have a high
level of self-confidence.
3. SYSTEMATIC IN PLANNING AND o Project a favorable image of themselves
MONITORING which is founded on respect and good
o An entrepreneur does not set goals and deeds in the business community
objectives or monitor entrepreneurial o Entrepreneurial self-confidence is actually
activities but follows a systematic pattern a manifestation of the entrepreneur’s
of planning processes and monitoring strong trust or belief in himself/herself
approaches o Has specific and unique skills or abilities
o Systematic means that there is a rational that help build self-confidence
and logical approach in performing the o Has confidence to complete a difficult
activities. They follow step-by-step task on time with their decision in their
procedures that are scientifically abilities
designed to be followed in the preparation
of plans and monitoring of activities.
ENTREPRENEURIAL SKILLS
o Planning means setting of goals and
objectives.
o Monitoring refers to the evaluation of the
activities and adopted courses of actions
whether they are carried in accordance
with the plans.
o Should adopt a systematic and
coordinated planning and monitoring
activities