Chapter 1: CONCEPTS OF ENTREPRENEURSHIP

I. THE ENTREPRENEUR
 The entrepreneurs are individuals who are alert to profitable opportunities for the exchange of goods or
services.

The Entrepreneur as a Missionary

- The entrepreneur is a missionary who perceives opportunities inherent in the exchange of goods with great
desire for profit.
- The entrepreneur creates an environment in which success is possible and the possibility of failure is
controllable.
- The entrepreneur is at work whenever he takes risk and invests his personal talents and resources to make
something new or different as customers like to buy new and improve products.

The Entrepreneur as an Extraordinary Businessman

- The entrepreneur has knowledge which ordinary people do not have. This additional knowledge leads the
entrepreneur to exploit the opportunities to make profit.

The Entrepreneur is Goal Driven

- The entrepreneur is goal driven and self-confident as he exercises the locus of control.
- He sets high goals and strives to attain the projected target and accomplishment.

The Entrepreneur is Marketing Man

- The needs and wants of customers are properly identified and these are the propelling reason for him to take
the opportunity to make profit.
- He takes the lead for innovation and makes modifications to make the customers aware that his product or
service is more superior than those offered by others.

The Entrepreneur Starts Small to Become Big

- Many entrepreneurs start small but with their managerial talents and persistence, they exploit the opportunities
available for their disposal.

II. THE MAKING OF AN ENTREPRENEUR

 The making of an entrepreneur is a dynamic process and an approach.
 As an approach, the entrepreneur considers the business opportunity as a chance to find new ways to solve the
problem rather solving the problem.
 Entrepreneurship is a process that can be developed, learned and nurtured.

III. ENTREPRENEURSHIP AS A DYNAMIC PROCESS

 Entrepreneurship is a dynamic process of innovation and the creation of new opportunity for the creation of
new venture.
 The small business owner entrepreneur in the sense is self employed and is different from an innovator
entrepreneur.
 The real entrepreneur is an individual with the greatest drive for expansion and growth.

IV. THE FACTORS THAT DEVELOPS ENTREPRENEURIAL ACTIVITY

1. The Entrepreneur Takes the Initiative. With some knowledge on hand, he knows that he can operate the
venture with minimum risk.
2. Organization of Capital Resources. With his savings and other financial resources, he starts operation on small
scale together with his trusted family members or friends he knew that could help him develop his dream
enterprise.
3. The Development of Administrative Machinery. Specific duties and responsibilities are assigned to individuals
with talent and skills that fit their respective position.
4. The Development of Entrepreneurial Autonomy. Taking the lead in all activities of the organization especially in
the early stage of operation.
5. The Development of SWOT Analysis. The avoidance of risk can be taken with careful analysis of the Strength,
Weaknesses, Opportunities and Threats of the organization.

V. PECULIAR CHARACTERISTICS OF MANAGERS IN SOLVING PROBLEM

1. He develops system and procedure that are précised based on current practices in the industry.
2. The manager is interested in solving organizational problems rather than finding other avenues in the solution of
the problem.
3. The manager is interested in the refinement of policies and procedure and tends to revise them to solve existing
problems.
4. He finds ways and means to solve problem and compliance to routine activities.
5. He is interested in details and sensitive to group cohesion and extract group cooperation as a means to group
accomplishments.

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VI. CHARACTERSTICS OF INNOVATOR ENTREPRENEUR IN SOLVING PROBLEM
1. He looks at the problem on different angles and finds means to circumvent the same.
2. He discovers the roots of the problem and develops avenues to better solve the problem. He formulates
solutions and alternatives.
3. He develops basic assumptions and hypothesis related to current practices and makes innovations based on
careful analysis through SWOT.
4. The innovator entrepreneur is interested in the end results rather than be means to achieve it. He has little
tolerance for details and routine work.
5. He capitalizes on people with bright ideas and talents and gets their opinion and consensus and with little
regards for people with mediocre ideas.

VII. THE FILIPINO ENTREPRENEURIAL LANDSCAPE

1. The Pre-Spanish Period (Barter System)
o The early inhabitants of Filipinos came from all parts of Asia through land bridges.
o The group of islands were settled by different tribes and groups.
o Began to develop primitive agriculture through planting ang gathering food to sustain their living.
o They live in hunting wild animals, fishing along the shores and later permanently lived as group with
their leader who was usually the oldest or the most powerful individual.
o They shared their harvest and food by barter system (exchange of goods).
o The early inhabitants traded with the Arabs as early as the 10 th century. They came with clothing made
from silk and exchanged it with gold and pearls.
o Later the Chinese came in boats with their porcelain and traded with the natives from the northern tip
of Luzon to Sulu. Barter trade was built on trust as the Chinese left their goods and later collected gold,
handicraft and pearls from the natives as payment.

2. The Spanish Colonizer (Galleon Trade)

o For more than 300 years, we were under the Spanish rule and entrepreneurship was limited to the
development of agriculture as they promoted the encomiendas for the colonial masters. They made the
Filipinos slave in their own lands and amass the products of the soil.
o Vast truck lands were developed into Haciendas of the colonizers and the Filipinos who owned the lands
were given only a share of the harvest.
o The Spaniards promoted colonial entrepreneurial activity in the later part, and the lands were devoted
to the planting of tobacco especially in the northern part of the country to be exported to Spain through
the Galleon Trade.
o The Bicol region were devoted to the planting of abaca and the finished product (ropes) were sent to
Spain for use of the Galleon Vessels.

3. The American Economic Imperialism

o The Philippines became supplier of raw materials that entered American ports free of taxes and fees and
the finish products were exported to the Philippines with multiple profit.
o The country was made an agricultural arena for the production of more coconut, tobacco, sugar and
abaca to be exported to America to be used in the production of more goods to supple American
factories.
o Logs and timber products of the finest qualities were made into plywood and other products for
American market.
o To control Philippine Trade in 1909, the American government set up free trade under the Payne-Aldrich
Act which allowed important products like tobacco, coconut sugar, and abaca entered American ports
free of tax.

4. The Japanese Expansionism

o The Japanese entrepreneurial invasion was the result of the idea of co-prosperity for the Southeast Asia
region.
o Japan also had excess products and they also needed raw materials like copper, iron ore and forest
o products to develop further their industries.
o Since they had strong army and armaments to support their economic expansion they went to war with
America and Europe to expand their economic interest.
o Entrepreneurial activities were on a standstill as no American products came nor Japanese goods were
supplied into the stream of business as they were busy at war.
o Export of sugar, coconut, abaca and other products were on hold and the supply of money to buy basic
needs became scarce.
o For about 5 years this condition prevailed until the Americans recaptured the country with the help of
gallant Filipino soldiers.

5. Entrepreneurship in the Independent Republic

o After the war, the American granted the Philippines its independence and gave the leadership to the
country to Filipinos.
o Manuel L. Quezon was elected as the President

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 o The good Americans left us with wounded arms and limbs as the infrastructures were damaged.
o In 1946, immediately after the granting of independence, the Americans imposed the Bell Trade Act to
give the Americans businessman the right to exploit our natural resources especially in the areas of
mining and the operation of utilities.
o Filipinos and the lowly farmers could hardly find decent work.
o Many disgruntled leaders wanted a change in ideology from democracy to communism. They wanted
the lands distributed to the farmers and for them to get the fruits of the soil they worked for.
o American goods were reduced and this provided the local entrepreneur to gradually develop the local
business enterprise.
o Filipino First Policy under the administration of Pres. Carlos P. Garcia lasted for barely 7 years.
o The Political maneuvers of the USA elected Diosdado Macapagal as president. As a result of the favors
given to him, he was pressured to return the free trade agreement with the United Stated. This was in
exchange for the needed funds to support his government. The World Bank granted loans to Philippines.
o As a result of the decontrol program, the local industries that started their operation had to close shop
as they could not compete with American products that came. Many became jobless again.

6. The Doomsday in Philippine Economy

o President Ferdinand E. Marcos
o He needed necessary funds from World Bank and International Monetary Fund to build infrastructure
which he envisioned to pump the economy.
o Political opportunists, and economic elites, and cronies took advantage of the situation and did not
manage the borrowed money properly.
o To protect the political elites and the economic cronies of the administration and for them to be in
control, he suspended the election, and imposed Martial law.
o As a result, this allowed entry of foreign capitalists in the establishment of factories to capture cheap
local labor market for them to be competitive in the international market.
o The economy was in total devastation. The government had to impose taxes to pay for the loans with
WB-IMF.
o Entrepreneurship was in the hands of multi-national corporation as they operated factories in the export
processing zone to support their respective enterprise abroad using the Filipino labour force wherein
they pay minimum wages.
o The Philippines was left behind in the Asian growth region, as we have to pay loans with the
international financial institutions.

7. The Birth of a New Hope for the Filipino People

o President Corazon C. Aquino
o The focus of the new administration was the creation of more jobs by creating labor intensive industries
in the export processing zones and the development of the rural communities through intensive
agricultural production.
o Greater demand for manpower export to the Middle East and other countries created employment that
sustained part of our economic growth.
o Land Reform program was emphasized and the lands were distributed to the farmers.

VIII.THE PAR CRY HOPE IN THE NEW DEMOCRACY

 President Fidel V. Ramos was elected with high hopes for a new generation in economic recovery.
 He developed more power plants to solve the current crises in energy which taken advantage by the crony
capitalist who imposed government support program in terms of loans to operate the local power plants.
 Entrepreneurship remained with the few local opportunists who were hungry for more wealth as they captured
the major government projects.
 Economic growth figures were reflected in statistical boards but these did not cascade down to the poor as more
people continued to suffer the pain of hunger and the cost of living continued to rise.

IX. THE LAST DECADE OF ECONOMIC RECOVERY

 The new administration of the last two Presidents in the new decade did not change the political and economic
landscape.
 The few people that control business activity continue to amass more wealth that catapulted in the new book of
the business community as billionaires. Most of the are of Chinese origin.
 While the previous administration continued to herald accomplishment in economic growth and recovery, the
exploding population continued to suffer the hunger and unemployment.
 The new battle cry for reforms in government administration is sustaining in awareness in the frontal
government administration.
 Ang TUWID NA DAAN TUNGO SA KAUNLARAN will remain a mystery as long as people will remain in the dark
side of corruption and greed for more wealth and money.
 The country is a great ground for the development of local entrepreneurs and must start now before the foreign
invaders come in to exploit further our dwindling natural resources.

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TEST 1 – Write TRUE if the statement is correct and FALSE if the statement is wrong.
_______1. The development of entrepreneurship is necessary for the growth and development of our country.
_______2. Entrepreneurs are different from ordinary humans as they explore opportunities.
_______3. Most entrepreneurs started big and grow bigger as they amass more profit.
_______4. The entrepreneur develops plans and programs that ascertain definite advantage.
_______5. The needs and wants of customers are properly identified and these are the propelling reason for
entrepreneurs to take the opportunity to make profit.
_______6. Entrepreneurs are interested in end results rather than the means to achieve it.
_______7. Our early Filipinos traded with Arabs and the neighboring countries in Asia.
_______8. For 300 years, the Spaniards greatly helped in the development of entrepreneurship.
_______9. The Americans helped us to become good entrepreneurs as they exploit our natural resources.
_______10. Too much politics is another factor that hinders the growth of our economy.

TEST II – Select the correct answers.

a. American
b. Missionary Entrepreneur
c. The Spaniards
d. Overseas Filipino Workers
e. Marketing Man
f. The Entrepreneur
g. The Japanese
h. SWOT Analysis
i. Martial Law Regime
j. IMF and World Bank
_____1. An individual who is alert to business opportunities for the exchange of goods or services.
_____2. He is an entrepreneur who creates an environment where success is highly possible.
_____3. He is an entrepreneur who identifies the market or customer for goods or services.
_____4. It is the process of forecasting environmental events as it affects the operation of the business.
_____5. They are known for the operation of the Galeon Trade between the Philippines and Mexico.
_____6. They introduced education to the Filipinos but exploited our natural resources.
_____7. They invaded the South East Asian region for their economic expansionism.
_____8. It is the period of economic stagnation that brought about people power revolution.
_____9. They helped finance the operation of government but impose condition for the operation of trade and
business.
_____10. They are heroes of the new generation that help sustain the balance of economy at the time of recession.

TEST III – Discussion (Explain in your own words).

1. Discuss the development of entrepreneurial activities in the Philippines from the early period to the present.
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2. Give the factors that develop entrepreneurial economy.

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