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Entrepreneurial MIND=

Entrepreneurial Behavior (Pamantasan ng Lungsod ng Maynila)

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Who is an Entrepreneur?

Entrepreneurship is the process of creating something new with value by

devoting necessary time and effort, assuming and accompanying financial,
psychic, and social risks, and receiving the resulting rewards of monetary and
personal satisfaction and independence.

Four basic aspects of being an entrepreneur:

1. Creation of something with value – this means entrepreneurs create
products or services that can be offered for a price.
2. Devotion of necessary time and effort – they devote their time and efforts
towards the attainment of their personal goals. In business, some of this
goals are to earn profit, to make product/service available in the
community, to provide employment and income for their family.
3. Assumption of necessary risks. In the pursuit of their goals,
entrepreneurs assume risks on the possibility of losing whatever they put
in. in business there is the possibility to fail and loss everything. But the
possibility of earning big is even greater.

Role of the Government

The government provides incentives for more people to go into business.

Government projects like trade fairs, trade missions are being pushed to help
Entrepreneurs. Civic organizations or non-government organizations called
NGOs help promote entrepreneurship.

Who is an Entrepreneur?

Entrepreneur is a person who starts/or operates a business. He/she is

creative and innovative. A person who starts something new. She/he can be
male or female, young or old, professional, college graduate or school drop-out,
come from a poor or rich economic group. He is an owner/manager and willing
to take a risks. He is someone who is not willing to work for others. Instead, he
wants others to work for him. Usually his kind of business is single
proprietorship because he does everything from production to selling.

Role of Entrepreneurs in the Economy

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It is very vital in the economic development of the country. they provide

employment and income and moves the economy forward. The cycle are the
following entrepreneurs investment – employment and income – savings and
taxes. Thus the cycle results economic development as more people are
employed to enjoy an income through investment of the entrepreneur. The
government likewise benefits in the process because entrepreneurs pay taxes,
hence the government has the funds to provide services to the people.

Entrepreneurs are:
 Mobilizers of capital entrepreneurs use their own savings as capital for
their business ventures. However, if they do not have the capital, they
can be borrowed from banks to finance their intended business.
 Service providers – business ventures of entrepreneurs could be along the
line of service like parlors, spa or coffee shops.
 Employers. Usually entrepreneurs hire people to help them in their
business. A restaurant owner, for example will hire cooks and kitchen
helpers while he, the owner, does the purchasing and attending to the
customers.
 Tax payers. Business establishments pay taxes to the government. Thus
more businesses would mean more taxes and better government services.
 Suppliers of products. Products and services are available through the
efforts of the entrepreneurs. Without them, a scarcity of certain products
and services will be felt.

Entrepreneurial Competencies

Entrepreneurs are ambitious. They have strong desire to succeed. They are
motivated by their personal mission and vision. They are willing to do whatever
it takes to succeed. They take risks and sometimes at a higher level than most
other people. They are ready to take road less travelled. They are confident
they will succeed. They have no one to answer to, they are their own bosses.
The risk-taking quality of an entrepreneur is not the same as that of the gambler.
The entrepreneur has a way of controlling the outcome.

Competencies
1. Strong desire
2. They are risk takers

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3. They are creative

4. They take responsibility for their activities
5. They have a high level of confidence

The rewards of entrepreneurship

a. Money or material return or profit
b. Freedom
c. Psychological rewards

Profit generally comes in the form of money or cash. This is the material
income or rewards from running a business. Profit is what is left after deducting
the cost and expenses from the selling price of products and services.

Selling price-cost and expenses = profit

The entrepreneur has freedom to do what he feels if fit in his business. The
products maybe those he bought for sale, those he bought and converted to
other products, or those services rendered to others. Freedom includes what
product to sell, where to sell and when to sell.

Good feeling of being service to others. The entrepreneur is able to satisfy

customer’s needs, to give work or employment to others, to pay taxes to the
government and to support the community. To most entrepreneurs, running
their business is fun. They feel like they are always socializing with their
customers, their employees and their business associates.

Prestige is also a good feeling. There is a sense of power, that of not being
dependent on someone else for income. Such feeling give rise to improved self-
esteem and self-confidence.

Problems of entrepreneurs
 Demands hard work
 Demands long working hours
 Demands may cause emotional stress
Strength and weaknesses
Strengths

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- Skill
- Knowledge
- Health
- Interest
- The desire to grow
Weaknesses
- Lack of self confidence
- Inability to speak well and convince people
Basics of running a business
1. Make sure you get things done
2. Be close to customers
3. Innovate. Be open to new ideas
4. Produce through people. Trust them
5. Be hands on in running your business
6. Be clear with your values
7. Know your expertise. Continue doing it. Stick to what you know best.
8. Keep things simple
9. Keep a lean staff
10.Keep firm on directions but at the same time give your people autonomy.
Be good at balancing the two

10 Entrepreneurial Characteristics
Achievement cluster
1. Opportunity seeker
2. persistent
3. committed
4. risk-taker
5. values efficiency and quality oriented
Planning cluster
1. goal seeker

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2. information seeker
3. systematic in planning and monitoring
Power cluster
1. persuasive in networking
2. possess strong sell confidence
Other factors to consider
1. personal interest
2. knowledge/talents
3. training/work experience
4. government support/assistance programs
5. rate of growth of business
6. other considerations
based on the above characteristics of entrepreneurship, the list of
entrepreneurial personality can be limped into three namely:
A. high need for achievement
B. strong belief that they can control their destiny
C. risk-taker

ENTREPRENEURIAL ACTIVITIES

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1. Trading- direct selling

2. Manufacturing
Raw materials, direct labor, factory overhead
3. Service business
4. Retailing
Kinds of retailer
department store
supermarkets
convenience store
factory outlets
direct selling
vendors
specialty store
hypermarket
service business
warehouse club
specialty store
telemarketing
automatic vending
electronic marketing
franchise
retailer cooperative
shopping center
on line

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