“ENTREPRENEURSHIP”
NOT make any distinction as to the SIZE of the
LESSON 5: MISCONCEPTIONS ON
ENTREPRENEURSHIP
Define MISCONCEPTION.
a wrong belief or opinion as a result of not
understanding something (Macmillan Dictionary)
MISCONCEPTIONS ON ENTREPRENEURSHIP
• Entrepreneurship applies only to manufacturing
businesses.
• Entrepreneurship applies only to small businesses.
• Entrepreneurship applies mostly to persons with
good educational background in business courses.
• Entrepreneurship applies only to a good economy.
• Entrepreneurship is simply opening a small business.
Misconception #1: Entrepreneurship applies only to
manufacturing businesses.
X: It is ONLY applicable to MANUFACTURING
but NOT to MERCHANDISING and SERVICE.
✔ : Regardless of whether the business venture is
merchandising, service, or
manufacturing, the concept of entrepreneurship is
applicable.
❖ MERCHANDISING and PROVIDING
SERVICES
- CREATIVITY and INNOVATION are hardly
noticeable because there is NO
TRANSFORMATION in the appearance and
content in the product
❖ MANUFACTURING
- the product passes through the different stages of
processing from raw materials to finished goods
- CREATIVITY and INNOVATION take place
during the processing period
Merchandising- businesses that sell products to
customers (e.g. grocery stores, department stores, car
dealers, real estate dealers)
Service-an enterprise composed of a professional or
team of experts that deliver work or aid in completing a
task for the benefit of its customers (study.com) e.g.
airlines, banks, law firms,
Manufacturing-is any business that uses components,
parts or raw materials to make a finished good
(study.com) e.g. bakeries, Procter and Gamble, San
Miguel, Colgate etc.
Misconception #2: Entrepreneurship applies only to
small businesses.
✔ Entrepreneurial concepts and principles DO
business venture.
• Entrepreneurship principles apply to small, medium,
and big businesses
• When the business venture becomes big, expands its
operations, or opens other branches locally or
abroad, the OWNER usually employs a qualified
MANAGER to run the day-to-day operations of the
branches.
-the owner may relinquish to the MANAGER certain
functions such as financing and marketing
- entrepreneurship becomes CORPORATE
ENTREPRENEURSHIP (e.g. FRANCHISING
and transition of SOLE PROPRIETORSHIP to a
CORPORATION)
The amount of the business capital does not serve as a
reckoning ground for classifying whether the venture is
operating within the concept of entrepreneurship or
ordinary small business.
Entrepreneurship principles apply to small, medium, and
big businesses though many programs of the government
and NGOs on entrepreneurship are focused on the
organization and development of small businesses.
Entrepreneurship becomes CORPORATE
ENTREPRENEURSHIP, which is a process that goes
on inside an existing business venture and may lead to
new ones and the development of new products and
services
Misconception #3: Entrepreneurship applies mostly
to persons with good educational background in
business courses.
✔ Nobody is born an entrepreneur.
✔ In reality, SUCCESSFUL ENTREPRENEURS
come from all walks of life and have different
educational backgrounds from different colleges and
universities in the country.
✔ It is your INNER DRIVING FORCE that carries
you towards becoming a dynamic entrepreneur.
*Nobody is born an entrepreneur. To become a
successful entrepreneur, you must know the basic
concepts and principles of entrepreneurship and apply
them properly to your chosen business. The environment
in which your business operates also contributes to its
success.
*Although business courses may help you in the field of
entrepreneurship, it does not, however, provide an
assurance that you will become a dynamic entrepreneur.
There are several forces that significantly influence the
success of a business venture. These forces in the market
are sometimes considered threats because they may lead
to the downfall of the business.
Misconception #4: Entrepreneurship applies only to a individual Filipinos, the local community, and the
good economy. Philippine economy. Basically the benefits derived from
entrepreneurship are compounded from one level to the
✔ An entrepreneur finds business opportunities in both
next. It produces a chain of progressive results from the
flourishing and distressed economies.
individual entrepreneur to the community and finally to
✔ Entrepreneurship can exist in both good and bad the whole Philippine economy.
economies.
Importance of Entrepreneurship
• Big businesses during financial crisis:
✔ to the FILIPINO PEOPLE
CONTRACT their production output
✔ to the LOCAL COMMUNITY
• Small businesses during financial crisis:
INCREASE their output ✔ to the PHILIPPINE ECONOMY
✔ Even during a financial crisis, new ideas can be LESSON 7: SOURCES OF ENTREPRENEURIAL
created and new business opportunities can be IDEAS
identified.
During a financial crisis, big businesses usually adopt a
conservative approach in utilizing their resources. They
reduce their production output and hold on to their cash.
This will ultimately reduce employment and congest the
flow of money in the economy. (e.g. Company responses
in time of COVID-19)
While big businesses are contracting their production
Sources of Entrepreneurial Ideas:
output during such an event, small businesses, on the
other hand, increase their output. Since small businesses 1. Changes in the environment
are expected to suffer small losses in the event the 2. Technological discovery and advancement
operating performance will not be favorable, the truly 3. Government’s thrust, programs, and policies
committed ones make substantial application of 4. People’s Interest
resources and maximize their biggest assets—time and 5. Past experiences
manpower—to sustain their businesses.
Misconception #5: Entrepreneurship is simply CHANGES IN THE ENVIRONMENT
opening a small business.
o External Environment
✔ Entrepreneurship does not merely mean opening a  Physical environment
small business. - simply the first step in  Climate
actualizing the entrepreneurial  Natural resources
venture  Wildlife
 Societal environment
✔ Entrepreneurship does not start and end with  Economic forces
opening a small business; it is a long, continuing  Sociocultural forces
process.  Political forces
 Technological environment
Prior to this, the business must have already passed
 Industry environment
through the preliminary stages of scanning the  Government
environment and preparation of the feasibility study and  Competitors
business plan.  Suppliers
 Customers
LESSON 6: IMPORTANCE OF
 Creditors
ENTREPRENEURSHIP
 Employees

First, it is important to have a background understanding

of the effects of entrepreneurship on the lives of
 e.g. an auditor who has learned the appropriate auditing
and management advisory skills and techniques in a
prominent auditing firm can start his or her
As an entrepreneur, you must keenly observe and be entrepreneurial venture by opening his or her own
vigilant to the reactions of the people to the changes in auditing office.
the external environment. These changes may or may not
have an entrepreneurial implication. You must
determine, therefore, what changes have entrepreneurial
indications. (e.g. What kind of business venture is the
best to respond to the needs of the people during dry/wet
season?)
TECHNOLOGICAL DISCOVERY AND
ADVANCEMENT
o Source of ideas: discovery and advancement in
the use of technology 
e.g. A person with sufficient knowledge in the repair and
installation of a mechanical engine discovers that the
additional engine parts he installed during the repair has
considerably reduced fuel consumption. 
 What could  he/she possibly do?
A. He/She could simply rest on his or her laurels
for having contributed to fuel conservation. 
B. He/She could manufacture the new engine parts that
could reduce fuel consumption. (business opportunity)
GOVERNMENT’S THRUST, PROGRAMS, &
POLICIES
o Sources of ideas:
 priorities
 projects 
 programs
 policies
GOVERNMENT- local government (municipal, city, or
provincial) or the national government and its branches 
-changes in the policies and programs of the government
means NEW ENTREPRENEURIAL IDEAS ARE
LIKELY BORN
Thrust (n) driving force
The programs and agenda of the Philippine government
intuitively address the needs of the Filipino people.
There are also instances when the national government
responds to the call of international agencies or the
world market. Whenever there are changes in the
policies and programs of the government, new
entrepreneurial ideas are likely born.
PEOPLE’S INTERESTS
o Sources of ideas:
 interests
 hobbies
 preferences
e.g. internet cafes- strong attachment of young people
to computers; the rise of amusement parks,
nightspots, and nature farms-  response to the need of
people for fun and relaxation.

As an entrepreneur, your business venture should be

ADAPTIVE to the INTERESTS and HOBBIES  of
the people to protect and sustain your business.
PAST EXPERIENCE
o Sources of ideas:
  past experiences & exposures
- expertise and skills developed a person who
has worked in a particular field may lead to the
opening of a related business enterprise.