MODULE 2

Understanding Entrepreneurship

At the end of the lesson, you are expected to:

 Identify the misconceptions of entrepreneurship;
 Produce an output that shows your own product list.
ACTIVITY

How will you differentiate entrepreneurship and small business enterprises?

Answer: _____________________________________.

It is important to have background understanding of entrepreneurship especially

when you are about to think of possible products or services to offer.

DISCUSSION

Misconceptions on Entrepreneurship (Nick Aduana, 2020. Entrepreneurship in

Philippine Setting: C & E Publishing)
1. Entrepreneurship is only applicable to manufacturing business.
- The truth is merchandising and services are also business
ventures, the creativity is just noticeable in manufacturing business.
2. Entrepreneurship applies only to small business.
- It applies to all size of business whether it is small, medium or big.
We are just used to start as small business.
3. Entrepreneurship applies mostly to persons with good educational
background business courses.
- In reality successful entrepreneurs comes from different
educational backgrounds, different colleges, schools, and different status
in life.
4. Entrepreneurship applies only to a good economy
- The truth is we can find business opportunities whatever the
situation of the economy. There is a true story from successful
entrepreneur who found an opportunity from a crisis that is happening in
his time.
4. Entrepreneurship is simply opening a small business.
- In entrepreneurship opening a small business is just the first step.
It will not end to that step. It actually is a continuing process.
The Process of Creating your Venture

Sources of Entrepreneurial Ideas

A. Changes in the Environment

a. Entrepreneurial ideas may come from changes that happen in our
environment.

The External Environment of a Business Venture

Natural
Resources

Political Economic
Forces forces

Employee Government

Creditors
Competitors

Consumers Suppliers

Technological Sociocultural
environment Forces
Climate Wildlife

B. Technological Discovery and Advancement

Almost all of our generation embraces technology. An entrepreneur looks
at the possibility of business opportunities in any technological discovery
or any advancement.
C. Government’s Programs and Policies
 The projects, programs and policies of the government are also good
sources of entrepreneurial ideas. An example is when the government has
launched a marketing campaign to sell products in the Philippines.
D. People’s Interests
Entrepreneurial ideas can be found from the interests, hobbies, and
preferences of people. An example of this is the increasing number of Milk
Tea shops because of strong interest of young people to it. In this time of
crisis, we can evaluate what the people are into.

E. Past Experiences
The expertise and skills developed by a person or if he / she who has
worked before in a particular field, it may lead to the opening of a related
business enterprise. An example is a skilled technician who did not study
but he became skilled because he’s doing it for years.

SYNTHESIS
Entrepreneurship affects the live of entrepreneur, the local community and the
Philippine economy. A business venture is opened or created based on exiting
business opportunities. From different business ideas, those opportunities arise.
Good sources of entrepreneurial ideas are changes in the environment, technology
discovery and advancement, government’s, programs, and policies, people’s
interests, and past experiences.
VALUES

“”The best way to predict the future is to create it”

-Peter Drucker

What’s your insights on the given quote?

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