ENTREPRENEURSHIP

and
SMALL BUSINESS MANAGEMENT
By: Novelyn Baldemor
Subject teacher
Entrepreneurship and Economic Development
Economic Development
❖ Is a scheme aimed at improving the living
standards of the nation’s citizenry.
Elements in achieving the economic development
goal.
1. Human resources (labor supply, education, discipline,
motivation)
2. Natural resources( land, minerals, fuel, climate);
3. Capital formation (machines, factories, roads); and
4. Technology (science, engineering, management,
entrepreneurship).
What is Entrepreneurship
Entrepreneurship
❖ Refers to the economic activity of a person
who starts, manages, and assumes the risk of
a business enterprise.
Entrepreneur
❖ Person who undertakes entrepreneurial
activities.
Entrepreneur
❖ Identifies the economic need, considers
offering a business solution, proceeds to
assemble the resources required, and
assumes the risk of either succeeding or
failing.
Entrepreneur’s Task
a. Products and services for
customers and producers;
b. Employment;
c. Taxes;
d. Demand for suppliers’ products
and services; and
e. Training facilities for future
entrepreneurs
 Entrepreneurship and Innovation
Innovation
❖ the introduction of a new method, procedure,
custom, device, among others.
■ New product
■ New process of production
■ Substitution of a cheaper material in an
unaltered product;
■ Improvement in instruments or methods of
doing innovation
 Innovation important processes
a. Invention - refers to the discovery or devising of
new products and processes;
b.Development - refers to the process by which the
ideas and principles generated from the stage of
invention are embodied in concrete products and
techniques; and
c. Innovation - refers to the actual introduction of a
new product or process.
 New Ventures and Long-term Enterprise
❖ New venture cannot remain as such forever.
4 major stages from new venture to a successful
long-term enterprise
1.Prestart-up stage;
2. Start-up stage;
3. Early growth stage; and
4. Late growth stage
Prestart-up stage
❖ When entrepreneurs starts to question the
feasibility of an idea, product, or service.
❖ Seeks answers to questions regarding potential
markets, production, and financing.
 Start- up stage
1. Formation of the business;
2. Generation of necessary capital;
3. Purchase of facilities and
equipment;
4. Constructing prototype products ;
and
5. Testing the market
 Early growth stage
❖ It follows after establishing feasibility.
❖ Activities will be on a small scale, selling to limited
markets with limited resources.
 Late growth stage
❖ Final stage before the
new venture matures
into a stable enterprise.
❖ Skills of the entrepreneur
are less needed.
 Rewards for Successful Entrepreneurship
❖ The factors of production deserves to receive some
form of compensation it is referred to “things
required for making a commodity”.
❖ When land is used for production activities, the
owner of the land are paid a compensation called
rent, refers to specifically to the price paid per unit
of time for the services of a durable good.
❖ Effort of the laborers, they are paid wages and
salaries.
● Wages may be determined on a piece-rate basis
● Salary based on time-rate.

❖ Interest is the compensation paid to owners of

invested capital.
 Entrepreneurship and Business Size
To effectively compete, business of whatever size must
adapt innovative approaches to its activities.

Example of innovations:
1. Offering business services during Sundays and
Holidays.
2. Manufacture and sale of new products; and
3. Selling on a deferred payment scheme.
❖ Small Business have the advantage of switching to
another business concept whenever necessary.
❖ Large Business cannot do the same without
spending much.