SHS

Entrepreneurship
Quarter 1
Module 0.1: Introduction to
Entrepreneurship

(Image Source: https://www.google.com)

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Entrepreneurship
Quarter 1
Module 0.1: Introduction to Entrepreneurship

Republic Act 8293, section 176 states that: No copyright shall subsist in any work of the Government
of the Philippines. However, prior approval of the government agency or office wherein the work is
created shall be necessary for exploitation of such work for profit. Such agency or office may, among
other things, impose as a condition the payment of royalties.

Borrowed materials (i.e., songs, stories, poems, pictures, photos, brand names, trademarks, etc.)
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locate and seek permission to use these materials from their respective copyright owners. The publisher
and authors do not represent nor claim ownership over them.

Regional Director: Gilbert T. Sadsad

Assistant Regional Director: Jessie L. Amin

Development Team of the Module

Writers: Essencial B. Acabado

Language Editor: Andreo S. Tagle / Jovelyn A. Florece

Reviewers: NIXON SA. OLFINDO, EPS / DARCY GUY Y. MAÑEBO, EPS

Illustrator: Essencial B. Acabado

Layout Artist: Essencial B. Acabado

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Entrepreneurship - Grade 12
Quarter 1 – Module 0.1: Introduction to Entrepreneurship

I. Introduction:

The outbreak of COVID-19 pandemic led to closure of various business establishments that
resulted to job termination of many employees. Plenty of workers became unemployed and waited for
the assistance from the government. However, there were also plenty of people including the terminated
employees who were able to look for their livelihood during the pandemic. Most of these people were
able to sustain their needs because of their entrepreneurial mind.

Thus, to be able to survive and to keep pace with this hard and challenging world while facing
speed of technological advancements, unexplored doors of various new business opportunities must be
opened up – and that is the role of an entrepreneur. Entrepreneurship, being known to humankind as
one of the most powerful economic force, empowers individuals to seek opportunity where others find
difficult problems. Entrepreneurship is the symbol of achievement and business tenacity. It is a
fundamental source of change in all facets of society and a key to economic development.

II. Objectives
At the end of the lesson you
are expected to:

• Understand the relevance of entrepreneurship (TLE_ICTAN11/12PC-Ia-1);

• Understand the concept of entrepreneur and entrepreneurship
(TLE_ICTAN11/12PC-Ia-1);
• Identify the factors affecting entrepreneurship (TLE_ICTAN11/12PC-Ia-1); and
• Explain the core competencies in entrepreneurship (TLE_ICTAN11/12PC-Ia-1)

III. Vocabulary List

• Intrapreneur
These are usually employees within a company who are assigned a special idea or project and
are instructed to develop the project like an entrepreneur would.
• Intrapreneurship
Activities that occurs within a firm or large organization which includes corporate venturing,
when large entities spin off organizations.

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 • Entrepreneur
Derived from the French word, entreprendre, which means “to undertake” (Pahuja, 2015). This
refers to an individual or groups of individuals that act independently, or as part of a corporate
system, that create new organizations or instigate renewal or innovation within an existing one.
In other book, it refers to those innovators who “undertake” the risk of new enterprises and
generate new ideas to create unique and potentially profitable solutions to modern-day
problems.
• Entrepreneurship
An economic activity of an entrepreneur who is always in search of something new to exploit
new ideas into gainful opportunities by accepting the risk and uncertainty of the enterprise.

It covers the occurrence of organizational innovation or creation of new products that occurs
inside or outside the existing organization (Cuervo, et al., n.d.).
• Enterprise
A business or an establishment created by an entrepreneur.

IV. Pre-Test

Direction: Carefully read the statement below. Place a T on the line if you think the statement is TRUE
and place an F on the line if the statement is FALSE.
Entrepreneurship is a complex phenomenon which is influenced by the interplay of a
1.
wide variety of factors that include personality, internal and environmental factors.
Entrepreneurship involves creation and use of innovative ideas, maximization of output
2.
from given resources, and development of managerial skills.
3. An entrepreneur is a high risk-taker.
4. To be an entrepreneur, one needs money only.
5. Entrepreneurship, like leaders, are born, not made.

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 V. Learning Activities

Practice Activity 1. Reveal the Relevance!

1. Development of managerial capabilities

One among the many relevance of

entrepreneurship to an organization is that it helps
in identifying and developing managerial
capabilities of entrepreneurs. An entrepreneur
studies a problem, identifies its alternatives,
compares the alternatives in terms of cost and
benefit implications, and finally chooses the best
alternative (De Guzman, 2018).
Photo from google.com
Studying a problem, identifying its
alternatives, comparing alternative in terms of cost and benefit implication and choosing the best
alternative help in sharpening the decision-making skills of an entrepreneur. Besides, these managerial
capabilities are used by entrepreneurs in creating new technologies and products in place of older
technologies and products resulting in higher performance (De Guzman, 2018).

Your Task: Give an example of a product that has become widely used in this time of
COVID-19 pandemic. Compare its cost and benefits with its competing products and choose which of
this product is the best alternative. Discuss the reason why you choose such alternative. With your
innovative mind, what suggestion can you give to further enhance or improve the product? Please
accomplish the table below in a separate sheet of paper.

Name of Product Brand A Brand B Brand C Other Brand

(write the brand name)

How much is the cost of each brand?

List down the benefits of each brand

Tick mark the brand that you choose

Under the brand that you choose,

write down your reason/s why you
choose that brand.

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 Name of Product Brand A Brand B Brand C Other Brand

(write the brand name)

What suggestion/s can you give to

further enhance or improve the
product?

2. Creation of organizations

An organization is created when entrepreneurs assemble and coordinate

the human, physical and financial resources and direct them towards
achievement of goals and objectives through managerial skills.

Your Task: List down at least five (5) examples of organizations

that were assembled by entrepreneurs.
Photo from google.com

1. ___________________________________________
2. ___________________________________________
3. ___________________________________________
4. ___________________________________________
5. ___________________________________________

3. Improving standard of living

The high standard of living is the result of the

enormous effort of entrepreneurs who made a wide
variety of goods and services which are available to
the society that yields to higher employment rate and
new business opportunities.

Photo from google.com

Your Task: Give at least five (5) examples of products owned by an individual that signifies his
high standard of living.

1. ___________________________________________
2. ___________________________________________
3. ___________________________________________
4. ___________________________________________
5. ___________________________________________

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 4. Means of economic development

The economic development of a country is evident by high employment rate, sprouting of various
business establishments as well as improvement
of the country’s infrastructures, facilities and
services. These kinds of development are made
possible by entrepreneurs.

Photo from google.com

Your Task: Give at least five (5) scenarios wherein we can observe that our economy is being
developed.

1. ___________________________________________
2. ___________________________________________
3. ___________________________________________
4. ___________________________________________
5. ___________________________________________

Learning the Concepts:

Entrepreneurs
➢ Entrepreneurs are the person who undertake entrepreneurial activities; recognizes an
economic need, thinks of a business solution, undertake to assemble the required
resources, and assumes the risk of either failing or succeeding.
➢ Entrepreneurs are innovators, willing to take risks and generate new ideas to create
unique and potentially profitable solutions to modern-day problems.

Entrepreneurship
➢ Entrepreneurship is the process of creating something new, be it a product or a service,
and assuming the risks and rewards.
➢ It also refers to economic activity of a person or an organization who starts, manages
and assumes the risk of business enterprise.
➢ Entrepreneurship ranges in scale from solo projects (even involving the part-time
entrepreneur) to major undertakings that create many job opportunities (De Guzman,
2018).
➢ Entrepreneurship employs what Schumpeter called the “gale of creative destruction”
to replace wholly or partly inferior innovation across markets and industries. This
destruction simultaneously creates new products and new business models (De
Guzman, 2018).

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Story Time….. The Origin of Post-it Notes.

A story adapted from History Timeline: Post-it® Notes.

Photo from google.com

Everyone knows what Post-it® Notes are. These are those great little self-stick
notepapers. Most people have Post-it Notes. Most people use them. Most people love them,
but Post-it Notes were not a planned product. No one got the idea and then stayed up nights
to invent it.

One day, a man named Spencer Silver was working in the 3M research laboratories
in 1970 trying to find a strong adhesive. He was able to developed a new adhesive, but it was
even weaker than what 3M already manufactured. It stuck to objects, but could easily be
lifted off. It was super weak instead of super strong.

No one knew what to do with the stuff, but Silver didn't discard it. Then one Sunday
four years later, another 3M scientist named Arthur Fry was singing in the church's choir. He
used markers to keep his place in the hymnal, but they kept falling out of the book.
Remembering Silver's adhesive, Fry used some of it to coat his markers. Success! With the
weak adhesive, the markers stayed in place, yet lifted off without damaging the pages. 3M
began distributing Post-it ® Notes nationwide in 1980 -- ten years after Silver developed the
super weak adhesive wherein today became one of the most popular office products
available…. Spencer Silver, Arthur Fry…intrapreneurs.

The story of Post-it Notes above is a clear example of an entrepreneurial activities.

These activities can be disruptive or incremental. Disruptive innovations are entirely new
approaches while incremental innovations involve small changes that transform process
flows. The case of Post-it Notes is an incremental innovation.

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 Aside from being an example of incremental innovation, Post-it Notes can also be
considered as what Schumpeter called the “gale of creative destruction” that instead of
creating a strong adhesive, Silver was able to developed a weaker adhesive that later became
a necessary office supply.

Practice Activity 2. Applying your Entrepreneurial Mind

We are now aware that entrepreneurship is a process of creating
something new, be it in a form of a product or a service, and assuming the
risks and rewards attached to its creation. In other words, you may
financially gain from it or you may experience financial loss. With your
entrepreneurial mind, what product or service which you think will be
patronized in this time of pandemic? If it is already an existing product,
what innovation could you suggest in order to add more value to the
Photo from google.com
product?

Please write your answer on the line provided below:

Factors Affecting Entrepreneurship

There are several factors that affects entrepreneurship such as psychological, economic, social
and cultural factors, but those factors can be categorized only into two factors to wit, environmental and
personality factors (De Guzman, 2018).

1. Environmental factors

These factors relate to the place or conditions in which an entrepreneur has to work. Factors
such as economic and social conditions, political climate, legal system, and market situations are
just few examples of environmental factors that significantly affect the economic activities of an
enterprise.

For example, the tax imposed by the Bureau of Internal Revenue on the online sellers of
commodities affects the production of goods and/or services of an enterprise.

2. Personality factors
These are the traits possessed by an entrepreneur.

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 1. Drive. An entrepreneur is self-motivated enough to pursue his chosen course without
relenting even in the face of adversity. If he fails in his first attempt, he makes another
attempt.
2. Critical thinking. An entrepreneur’s job involves decision-making and problem solving.
A man with superior thinking ability can see through the maze of information (or
disinformation) brought before him.
3. Human relations ability. An entrepreneur possesses high social awareness and ability to
build relationship with others.
4. Ability to communicate. Communication skill is a very important characteristic that an
entrepreneur must possess in order to succeed. The ability to understand and to be
understood makes it easier for the entrepreneur to transact business.
5. Technical knowledge. An entrepreneur must have familiarity of the business venture he is
going to undertake.
6. Reasonable risk taker. When a person starts a new venture, he has already begun to
assume the risk of business failure. Entrepreneurs enjoy challenges. But they are careful
and calculating. So, they do away from high risk situations, because these might not be
attainable. However, entrepreneurs also avoid low-risk situations because there are no
challenges. A risk situation exists when results are not certain, either it is success or failure.
In view of the risk-taking abilities of entrepreneurs, they make things happen rather than
let them.
7. Self-confident. Entrepreneurs have strong faith in their abilities. They believe they can be
the best in their field. They do not accept things as they are, because they believe they can
do things better.
8. Goal setter. An entrepreneur usually has a specific target and because he is persistent to
achieve a certain target, he creates strategies and action plan.
9. Accountable. An entrepreneur takes full responsibility of whatever will happen to the
enterprise.
10. Innovative. An entrepreneur always seeks for something new and useful product or
service. He always strives to discover new things or strive to improve existing products or
services.

3. Biological factor

This factor is something new. The writer of this module decided to include biological
factor since many enterprises had been affected by the COVID-19 pandemic. This pandemic is
a kind of viral respiratory infection that has no cure yet at the time of this writing.

Various enterprises and commercial establishments stay closed, work stoppage

occurred, and there was a limit in mobility of almost everyone in the entire world. However,
other businesses strive because of this factor such as the manufacturers of alcohol, personal
protective equipment and face masks. Entrepreneurs of this sort were able to design an
innovative product.

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 Practice Activity 3. The Thinker
As an entrepreneur, you should have a new business idea. What
business idea do you have in mind which you think will negatively be
affected by the aforementioned environmental and biological factors? By
using your critical thinking ability, what are you going to do in order to
solve the issue? Write down your answer on the table provided below.

Photo from google.com

New Business Idea Action Plan (Solution)

Core Competencies in Entrepreneurship

1. Economic and dynamic activity. Entrepreneurship is an economic activity because it is
concerned in the creation and operation of an enterprise with a purpose of creating value or
wealth through maximum utilization of scarce resources. This value creation activity is
performed continuously in the midst of uncertain business environment. Hence,
entrepreneurship is regarded as a dynamic force (De Guzman, 2018).
2. Innovation. Entrepreneurship involves continuous search for new ideas. It compels an
individual to continuously evaluate the existing modes of business operations so that more
efficient and effective systems can be evolved and adopted. In other words, entrepreneurship is
a continuous effort for synergy to ensure optimization of performance in organizations (De
Guzman, 2018).
3. Profit potential. Profit potential is the ability of a product or service to generate revenue which,
after expenses, leads to net income.
4. Risk bearing. There are always uncertainties in every business enterprise. An entrepreneur
must be willing to undertake a calculated risk arising from the creation and implementation of
new business ideas. These ideas are always tentative and could result to either positive or
negative outcome.

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 Practice Activity 4. Case Analysis
In this time of pandemic, Al Cojol is thinking of other
means of livelihood. Then suddenly, he saw the bulk of unused
clothing which are stored in his closet. He thought of a product that
could be generated out from that available material. If you were Al
Cojol, what kind of business idea or product could you have in
mind? Since we have limited mobility, what are you going to do in
order to market your product? What innovation or improvement
Photo from google.com could you do to encourage the people to patronize your product and
what are the ways that you are going to do in order to determine that your product is profitable?

VI. Practice Tasks

Photo from google.com

Show that you have learned something by doing this activity.

Edgar Sia, a native of Iloilo City dropped out

of college to pursue his own photo-developing and
laundry business at the age of 19. In 2003, Sia, then 26-
year old, decided to open the barbecue fast food
restaurant, Mang Inasal—Ilonggo for “Mr. Barbecue.”
Photo from google.com
The first branch was built at a mall parking lot in his
home city.

The restaurant took off. When Tony Caktiong heard about Sia’s growing business, he decided
to buy Mang Inasal for a total of P5 billion. Sia eventually put the sales of Mang Inasal to other
investments like banking and healthcare. At 42, he’s considered the country’s youngest billionaire
(business.inquirer.net, 2020).

Practice Task #1 Fill Me In

Instruction: What entrepreneurial traits do Edgar Sia possess? List as many possible answers as you
can on the table provided on the following page.

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 Entrepreneurial Traits
1. 6.
2. 7.
3. 8.
4. 9.
5. 10.

Process Question:

1. How were you able to identify the entrepreneurial traits of Edgar Sia? What was your basis?
Write your answer on the following line provided.
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________

Mang Inasal Now Fully Owned by Jollibee

Jollibee Food Corporation (JFC) buys out remaining 30

percent equity shares of Mang Inasal Philippines (MIPI) for P2
billion. This move is in line with the terms sited under the
Shareholders’ Agreement on 22 November 2010, when JFC
acquired the initial 70 percent stake of the MIPI. With this
acquisition, JFC now owns 100% of Mang Inasal Philippines.

The JFC Group of Companies will also continue its strong

business relationship with Mr. Edgar Sia II, former owner and
founder of MIPI, together with his team, primarily the Double
Photo from google.com
Dragon Properties Corp. (manginasal.com, 2020).

Practice Task #2 Try Your Best

Process Question:

2. Upon knowing that Mang Inasal is now owned by Jollibee Foods Corporation, what factor/s do
you think had led Mr. Edgar Sia to sell his business? What was your basis? Write your answer
on the line provided below:
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________

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Rubrics:

Content Grammar
20 You were able to cite 10 You committed no or minimal
entrepreneurial traits and grammatical error in the output
discussed the basis of your
answer. You were also able to
cite the factor/s that led Mr. Sia
to sell his business and
discussed the basis of your
answer.
10 You were able to cite at least 5 You committed two (2) to three
entrepreneurial traits and (3) errors in the output
discussed the basis of your
answer. You were also able to
cite the factor/s that led Mr. Sia
to sell his business and
discussed the basis of your
answer.

Practice Task #3 How Proficient I am

LET US ASSESS!

Guide Questions:
1. Which part of the activities was difficult to answer? Why?
2. Which part of the activities was easier to answer? Why?

Please write your answer on the empty space provided.

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 VII. Post Test

Direction: Read each question carefully and answer the demands of the following questions. Please use
separate sheet of paper.

1. Explain the relevance of Entrepreneurship.

2. Explain the concept of entrepreneurship.
3. Explain the concept of entrepreneur.
4-6. Write the factors that affect entrepreneurship.
7-16. Enumerate the entrepreneurial traits.
17-20. Briefly discuss the core competencies in entrepreneurship.

VIII. Assignment/Additional
Activities

Look for an entrepreneur in your area. What product or service is being provided by such
entrepreneur? Is his or her product unique compared from the other available products in the market?
Prepare a checklist to determine whether he possesses the entrepreneurial traits.

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References:

Cuervo, et al (n.d). Entrepreneurship: concepts, theory and perspective. Introduction. Google books.
Retrieved from https://ks.google.com.ph on June 19, 2020.

Orcullo, N. Jr., (2019). Contemporary entrepreneurship. New Galaxie Lithographic Arts and Printing
Press, 2000. Quezon City.

Pahuja, A. (2015). Introduction to Entrepreneurship. Retrieved from

https://www.researchgate.net/publication/301659818 on June 22, 2020.

Room, B. (2019). Eight Successful Filipino Entrepreneurs Who Started Small. Retrieved from
https://business.inquirer.net/273445/eight-successful-filipino-entrepreneurs-
who-started-small on June 22, 2020.

https://www.google.com

https://www.post-it.com. History of post-it notes.

https://www.manginasal.com/newspost/mang-inasal-now-fully-owned-by-jollibee/

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