Basic Concepts of

Entrepreneurship
(Module 1 & 2)
Nature and concept of Entrepreneurship

ENTREPRENEUR
❑ comes from the French word “entreprendre”
which means “to undertake”

❑a person who strongly advocates and correctly

practices the concepts and principles of
entrepreneurship in operating and managing
the self-owned entrepreneurial venture.
Nature and concept of Entrepreneurship

ENTREPRENEURSHIP
❑ comes from the word
entrepreneur

❑is the process of

designing, launching
and running a new
business.
Nature and concept of Entrepreneurship

SMALL BUSINESS
❑ Refers to a business or
enterprise that correctly
adopts and practices the
principles of
entrepreneurship.
❑ It is owned by one person
with a limited workforce of
not more than 20 persons.
Nature and concept of Entrepreneurship

ORDINARY SMALL BUSINESS

❑ Refers to a business
enterprise managed and
operated by an owner who
is not an advocate of and
do not practice the
concepts and principles of
entrepreneurship.
Importance/Benefits of
Entrepreneurship
• Creates employment
• Improves the quality of life
• Contributes to a more equitable distribution.
• Utilizes resources for national productivity.
• Brings social benefits through government.
Role in the Socio-economic
Development
• Transforming ideas into economic
opportunities is the index of
entrepreneurship
• Entrepreneurship is the capacity for
innovation, investment and creation and
expansion in new markets, products and
techniques.
• Economically, entrepreneurship
invigorates markets.
Role in the Socio-economic
Development
• Empowers citizens, generates innovation
and changes mindsets.
• Entrepreneurship is an important factor
in economic development.
 Desirable Characteristics of a
Successful Entrepreneur
• Integrity
Successful entrepreneurs are rated
“being honest with everyone” and the
number one factor of their success.
• Self-discipline
To become a successful
entrepreneur, you need to be highly
disciplined. You have to develop the
ability to get things done, even when you
don’t feel like doing it.
 Desirable Characteristics of a
Successful Entrepreneur
• People skills
You should make an effort to
genuinely like, respect, and
appreciate other people around you.
The ability to win people over will
carry you far in all walks of life,
especially your own business.
 Desirable Characteristics of a
Successful Entrepreneur
• Strong work ethics
Most people want to do fastest
and easiest solution when it comes to
work. To be successful, dedicate
yourself to persistent, productive and
old-fashioned hard work.
 Desirable Characteristics of a
Successful Entrepreneur
• Passion
You should identify a profitable
market and then build your business.
Loving your business will also make it
easier to get through the start up
phase and other future obstacles.
 Desirable Characteristics of a
Successful Entrepreneur
• Strong leadership qualities
Being able to communicate
effectively, motivate others, sell your
ideas, and be decisive, are just a few
qualities of a good leader. In order
to become successful entrepreneur,
you must dedicate yourself in
improving your leadership abilities.
 Desirable Characteristics of a
Successful Entrepreneur
• Competitiveness
Competition is everywhere. In
business, it is always the survival of
the fittest. If you can out market and
outperform your competitors, your
chance of being a successful
entrepreneur will be much better.
Play to win, but never sacrifice your
integrity for the sake of a few pesos.
 Desirable Characteristics of a
Successful Entrepreneur
• Well-organized
One of the main reason why
small business fail is lack of
organizational skills. It is the ability
to keep deadlines and meet short-
term and long-term goals in time.
 Desirable Characteristics of a
Successful Entrepreneur
• Sales ability
the ability to convince others to
make a conscious decision is a key of
becoming a successful entrepreneur.
“People don’t buy for logical reasons.
They buy for emotional reasons”.