LYCEUM OF TUAO

Tuao, Cagayan

MODULE IN ENTREPRENEURIAL MIND

FOR THE MONTH OF AUGUST

COURSE: BSED II AND BEED II

COURSE CREDITS: 3 UNITS
CONTACT HOURS/WEEK: 3 HOURS

MODULE 1: THE ENTREPRENEUR

OBJECTIVE/LEARNING OUTCOME - Identify the origin and nature of Entrpreneurship, Enumerate the broad impact
of entrepreneurship upon the economy and determine contemporary views of entrepreneurship
LESSON 1- EVOLUTION OF ENTREPRENEURSHIP•
The term entrepreneurship originated in Europe sometime in the Middle Ages.Entrepreneur is of French origin
from the word entreprendre that means “ to undertake”.• Entrepreneurship refers to undertaking a business endeavo r
though no specific reference as to whether it meant undertaking the business for himself or doing it to someone else.• Early
entrepreneurs provided men and materials needed by feudal lords to wage war against their enemies.• The emergence of
entrepreneur or entrepreneurship at the height of feudal conflict in Franceis an indication that thekinds of activity is
“provision of services”
Lloyd Shefsky define entrepreneurship in 3 parts: 1. Entre means to enter2. Pre means before, and3. Neur means nerve
center
Karl Vesper-describes- entrepreneur in broader perspective by postulating that entrepreneurship is now a concern of
various professions.
Professor Robert Nelson defines entrepreneur as “a person who is able to look at the environment , identify opportunities
to improve the environment , marshal resources and implement action to maximize those opportunities.”FILIPINO
SUCCESSFULENTREPRENEURS
• Joseph Schumpeter- described entrepreneurship as a essential phenomenon that comes under wider aspect of leadership
.• Jeffry Timmons-described entrepreneurship as “the ability to createand build a mission from practically nothing.
”• Albert Shapero - entrepreneurship is the process of creating something different with value by devoting the necessary
time and efforts.
• Dr.N.A Orcullo , Jr.-defines entrepreneurship as: 1. Entrepreneur-someone who perceives an opportunity and creates an
organizations to pursue it. 2. Entrepreneurial process involves all the functions, activities and actions associate with
perceiving opportunities and creating organizations to pursue them.
THE ENTREPRENEUR- Someone who coordinates different factors of production
.• Pure-risk taker• Has Self-Confident• Hard working• Innovative• Leadership skills-
ENTREPRENEUR-the person behind entrepreneurship
Entrepreneurship is the act of creating a business or businesses while building and scaling it to generate a
profit.
Entrepreneurs are vital in the economic development of the country.

Examples of entrepreneurial skills

 Business management skills.
 Teamwork and leadership skills.
 Communication and listening.
 Customer service skills.
 Financial skills.
 Analytical and problem-solving skills.
 Critical thinking skills.
 Strategic thinking and planning skills.
https://www.google.com/search?q=entrepreneurial+skills&oq=entrepreneurial++skills&aqs=chrome..69i57j0i512l9.22984j

SOCIO-ECONOMIC BENEFITS FROM ENTREPRENEURSHIP

a. Promotes self-help and employment
b. Mobilizes capital
c. Provides taxes to the economy
d. Empower individuals
e. Enhance national identity and pride
f. Enhance competitive consciousness
g. Improves quality of life
Enhances equitable distribution of income/wealth
ENTREPRENEURS IN SMALL AND MEDIUM INDUSTRIES- Small and medium scale businesses are important in the
country.
1.They help provide the supply of products to customers
2. They help provide personal service.
3. Serves as a means of earning to an unemployed individual.
4. The small and medium scale businesses also provide

https://www.coursehero.com/file/72758296/Entrepreneurshipdocx/

Attributes, Qualities, and Characteristics of an Entrepreneur

The Role of an Entrepreneur:

1. Entrepreneurs are innovators-They observe an opportunity. They create new goods and services.They
improve existing products.
2. Entrepreneurs provide choice-They add goods and services to the marketplace.They offer variety.They
design different approaches to familiar problems.
3. Entrepreneurs provide jobs-They hire workers for their businesses .They consume resources, thus providing
jobs in the industries that supply those resources.
4. Entrepreneurs help the economy grow.

10 Characteristics of a Successful Entrepreneur

 Creativity.
 Professionalism.
 Risk-taking.
 Passion.
 Planning.
 Knowledge.
 Social Skills.
 Open-mindedness towards learning, people, and even failure.

https://www.google.com/search?q=characteristic+of+entrepreneur&ei=ojA4YevbDYeA9u8PwLmEqA0&oq=characteristic+of+e
 LYCEUM OF TUAO
Tuao, Cagayan

MODULE IN ENTREPRENEURIAL MIND

FOR THE MONTH OF SEPTEMBER

COURSE: BSED II AND BEED II

COURSE CREDITS: 3 UNITS
CONTACT HOURS/WEEK: 3 HOURS
MODULE 2-

1. SEARCH FOR BUSINESS OPPURTUNITY, IDEATION, INNOVATION AND CREATIVITY

2. ENTREPRENEURSHIP TREND AND ISSUES

3. BUSINESS OWNERSHIP AND ORGANIZATION

OBJECTIVE-

By the end of this module , you will be able to:

Discuss entrepreneuirial activities in search of business opportunities

Distinguish between creativity and innovation
Identify the entrepreneurial qualities of succesful entrepreneurs
Identify the managerial skills exercised by the successful entrepreneurs
Be able to know the nature of business and types of business organization and their advantages and disadvantages
Motivate and inspire you to become a future entrepreneur

MODULE 2-

1. SEARCH FOR BUSINESS OPPURTUNITY, IDEATION, INNOVATION AND CREATIVITY

2. ENTREPRENEURSHIP TREND AND ISSUES

3. BUSINESS OWNERSHIP AND ORGANIZATION

Search for business opportunity, ideation, innovation

Search for Business Opportunity, Ideation, Innovation and Creativity.In the Search for Business Opportunity.
The Following Factors on Resources have to be evaluated:
1. Market -This refers to the numbers of prospective buyers, the price, and the quality of goods and services
that have to analysed. Business opportunities exist in areas where consumer satisfaction is weak or incomplete
2. Individual Interest -Business interest of individuals should match business opportunities. For example, if
one is a good cook, he should venture in the food business
3. Capital -This serves as the fuel that keeps the business operating. The availability of funds should fit the type
of business to organIze.
4. Skills -The Entrepreneur should have the proper skills in the business he going to undertake.
5. Supplier of Inputs -It is important that there are steady suppliers of raw materials and other inputs to the
business
6. Manpower -The success of any business also depends on the efficiency of its employee
7. Technology- Entrepreneurs should be aware of the presence of technology to improve their products or
services, or introduce new innovation in the market.

Among the productive resources, people are the most important because they are the ones who organize and
manage the other productive resources such as money, materials, machine, and manpower.
Other opportunity-seeking process that can be a guide a prospective entrepreneur:
Look at the other successful business/entrepreneurs.
Respond to a problem area
Home-Based
Business Option
Linkage of Resources

https://www.slideshare.net/andyvillarosa/search-for-business-opportunity-ideation-innovation

IDEATION
Ideation is the process of coming up with an idea. It is using creativity and questions like “What
if?” to imagine ways something can be done differently. The ideation stage is critical to ensure that
you are generating good ideas from the start. It involves seeing problems and opportunities,
brainstorming around the problems you identify, and doing research to test your assumptions about
the market, your customers, and your idea. Refining that initial idea involves assessing the market,
looking at trends, and asking questions (and more questions)—and learning from potential
customers, investors, and research whether your idea is a good one. The design process consists of
a series of steps to test assumptions and ideas. Ideation falls within a larger design process that
begins with understanding who you are serving; empathizing, understanding, and defining the
needs of that target audience; then ideating around what is needed

https://press.rebus.community/media-innovation-and-entrepreneurship/chapter/ideation-2/

CREATIVITY
Entrepreneurial Creativity is about coming up with innovative ideas and turning them into value-creating
profitable business activities.

Creativity in Entrepreneurship:
Creativity refers to the essential source of inventiveness and can lead to the formation of new firms and to make
improvements in existing products of the company to become more efficient and competitive in the marketplace. A
blend of creativity and technology in the activities of entrepreneurship to commercialize the idea related to products
and services is helpful to strengthen the entrepreneurship.

Entrepreneurial Creativity is about coming up with innovative ideas and turning them into value-creating
profitable business activities.

https://101entrepreneurship.org/creativity-in-entrepreneurship/

What is Innovation?
Innovation, as a concept, refers to the process that an individual or organization undertakes to
conceptualize brand new products, processes, and ideas, or to approach existing products,
processes, and ideas in new ways. 

In the world of business, there are many different types of innovation that a company might pursue.
These are often tied directly to individual products, internal processes or workflows, or business
models. Some companies even embrace all three in an effort to spearhead growth while adapting to
the ever-changing market.

Apple is a great example of an organization that effectively embraced innovation at multiple key

points in its lifetime. In the ’90s, for example, the company was on the verge of bankruptcy, but
managed to stave it off by partnering with Microsoft—a company long seen as the enemy. This move
effectively shaped Apple’s entire corporate philosophy and led to the introduction of the iMac, which
was an overall turning point for the company. 

However this was only the beginning for Apple, the partnership with Microsoft kick-started an era of
innovative risk-taking, which led to the invention of tech products many consider staples of their lives
today—including iPods, iPhones, Macbooks, Apple Watches, iPads, and more—alongside the
invention of iTunes, which effectively reshaped the music industry as a whole.
Why Is Innovation Important for Business Success?
We’ve all heard the phrase “adapt or die” and for businesses to achieve
success in today’s modern world, this is a universal truth. Take, for
example, the massive expansion in technological advancements in the past
decade; because of this extreme growth, businesses have been forced to
adapt and expand more than ever before.

https://www.northeastern.edu/graduate/blog/importance-of-innovation/

Current Trends, Issues, And Challenges In Entrepreneurship

Neil Patel: The Biggest Trends In Entrepreneurship[1,2]

1. Everyone is doing it. It seems like everyone calls themselves an entrepreneur. According to Inc,
nearly a fifth of all working adults in the US are “entrepreneurs”. The barriers to entrepreneurship are
technically low. You don’t need a ton of capital. It is generally fairly easy to go through the
bureaucratic steps to be an entrepreneurs.

2. Intrapreneurs are becoming more common. Many established companies are promoting

innovation through internal entrepreneurs. These are employees that are allowed to work like
entrepreneurs.

3. Solopreneurs are increasing. A solopreneur is an entrepreneur who runs their business alone.

They don’t have employees, but may have contractors. Solopreneurship is rising as it’s lean, nimble,
minimal, and free. For example, only one person can run an e-commerce store at the beginning.

4. Marketers are becoming Entrepreneurs. More and more people with marketing ability are taking
up entrepreneurship. With the rise of social media, it’s increasingly marketing ability that sells any
product.

5. Hiring contract workers is the thing to do. Since it is getting more expensive to hire and retain
experienced staff, a common solution is to find term contractors. It’s a win-win for both the contractor
and start-ups/small enterprises.

6. Entrepreneurs are laser-focused on revenue. More entrepreneurs are seeing the need to focus
on revenue, first and foremost. Funding is limited. The entrepreneur is forced to gain early viability
and near instant revenue.

7. Few entrepreneurs are starting big companies.Most companies are digital. They focus on digital
technology. The ideal entrepreneurial venture now happens with a laptop and a vision. Large scale
ventures like a manufacturing plant, or a transport company is not a popular pursuit.

8. Technology is becoming more and more disruptive. Take the examples of AirBnB and Uber.
These startups have redefined hotel industry and transportation industry. New entrants include Virta
Health, which connects diabetes patients directly with doctors via video chat. Roadrunner Recycling
that connects people with scheduled pickups and various waste management solutions.

9. Working from home. Almost every startup is leveraging the power of remote work. And many
startups are taking that to the next level and going completely online. Startups like Knack and Toggl
are 100% virtual.

10. Marketing is getting more interactive. Twitter/Facebook is an example. Users comment or

retweet. Social media marketing is making marketing a two-way conversation.
11. Consumers are in control. You can’t manipulate or trick people into buying your product. That
just doesn’t work today. Being honest works. They can also easily give feedback. Negative feedback
instantly ruins your reputation.

12. The Internet of Things is here. Internet of Things (or IoT) connects devices to the Internet to
open up new possibilities for using those devices. Apps to control those devices through IoT are in
demand. Data from wearable devices or even your fridge

13. Automation is rising. Chatbots and digital assistants are increasing. They are also getting
intelligent. Some even answer like a human would do.

Biggest Challenges/Issues[3,4]

1. Difficulty Keeping up with innovations or being the visionary. With the large number of competitors
emerging, it is becoming increasingly difficult to keep up innovating. On top of that, investors
want a better product. Knowing when to change is becoming key.

2. Harder navigating regulation and compliance. More and more regulations and bureaucratic red
tapes have emerged. Many startups are bringing in a consultant to help with these areas rather than
trying to understand the complexities themselves.

3. Exploding data. With 90% of the world’s data was created in the past two years and managing,
keeping safe and extracting insights from the ever-increasing amounts of data your company
produces is becoming difficult.

4. Maintaining reputation is getting tougher. With sites like Yelp or TripAdvisor, customers can
voice any displeasure so much more publicly and loudly than ever before. Businesses need to
continually monitor and maintain their online reputations.

References

1. https://www.inc.com/neil-patel/the-biggest-trends-in-entrepreneurship-i-ve-seen-this-year.html

2. https://neilpatel.com/blog/entrepreneurship-trends/

3. https://www.entrepreneur.com/article/254721

SUCCESSFUL ENTREPRENEURS

The following are the top five most successful American entrepreneurs in terms of world impact.
1. Andrew Carnegie. Andrew Carnegie was an American entrepreneur who actually immigrated
from Scotland. ...
2. Henry Ford. ...
3. Oprah Winfrey. ...
4. Bill Gates. ...
5. Larry Page.
11 Recognized Successful Filipino Entrepreneurs
 Henry Sy (Shoe Mart) ...
 Tony Tan Caktiong (Jollibee Foods) ...
 Socorro Ramos (National Book Store) ...
 John Gokongwei Jr. ...
 Edgar Sia (Mang Inasal) ...
 Joe Magsaysay (Potato Corner) ...
 Cresida Tueres (Greenwich Pizza) ...
 Milagros, Clarita, and Doris Leelin (Goldilocks)
https://www.google.com/search?
q=SUCCESFUL+ENTREPRENEURS+IN+THE+PHILIPPINES&ei=a1M4YYCLA8i4mAXGjLWACg
 BUSINESS OWNERSHIP AND ORGANIZATION
Thus, businesses make the goods and services you use each day. That includes the products and
services used by other businesses as well as those needed by individual consumers. There are generally
three types of business organizations operated for profit: service, merchandising, and manufacturing
businesses. Service businesses provide services rather than products to customers. Merchandising
businesses sell products they purchase from other businesses to customers. Manufacturing
businesses change basic inputs into products that are sold to customers. 
The Various Forms of Business Organization
A business organization may take the form of a proprietorship, partnership, or corporation. Each of these
forms and their major characteristics are listed on Table 1.
The three types of businesses we discussed earlier—service, merchandising, and manufacturing—may be
organized as proprietorships, partnerships, or corporations. Given the large size and huge amount of resources
required to operate a manufacturing business, most manufacturing businesses, such as San Miguel Corporation,
are corporations. Most large retailers like SM Supermalls, Robinsons, and Ayala Mails are also corporations.

1. Sole Proprietorship
This is a business owned by one person.

 Advantages of a sole proprietorship: (a) total undivided authority; (b) low organizational cost and license
fees; (c) tax savings; and (d) no restrictions on type of business (as long as it is legal).
 Disadvantages of a sole proprietorship: (a) unlimited liability; (b) limitation on size (and thus on fund-
raising power); and (c) limited by management’s ability to be jack-of-all-trades.

2. Partnership
This is an association of two or more people as partners; it refers to an arrangement in which the individuals
share the profits and liabilities of a business venture. Its chief characteristics are: (a) association of individuals;
(b) mutual agency; (c) limited life; (d) unlimited liability; and (e) co-ownership of property.

The association of individuals in a partnership may be based on as simple an act as a handshake; however, it is
preferable to state the agreement in writing.

 A partnership is a legal entity for certain purposes.

 A partnership is an accounting entity for financial reporting purposes.
 Net income of a partnership is not taxed as a separate entity.
Mutual agency means that an act of any partner is binding on all other partners, so long as the act appears to be
appropriate for the partnership. This is true even when partners act beyond the scope of their authority.
Partnerships have a limited life. Partnership dissolution occurs whenever a partner withdraws or a new partner
is admitted.

Each partner has unlimited liability. Each partner is personally and individually liable for all partnership
liabilities. Creditors’ claims attach first to partnership assets and then to the personal resources of any partner,
irrespective of that partner’s capital equity in the company.

3. Corporation
It is an entity created by law that is separate and distinct from its owners and its continued existence is
dependent upon the corporate statutes of the state in which it is incorporated.

The characteristics that distinguish a corporation from proprietorships and partnerships are:

1. The corporation has separate legal.existence from its owners.

2. The stockholders have limited liability.
3. Transferable ownership rights (ownership is in shares of stock).
4. Ability to obtain capital (relative ease).
5. The corporation can have a continuous life.
6. The corporation is subject to numerous government regulations.
7. The corporation must pay an income tax on its earnings, and the stockholders are required to pay taxes on
the dividends they receive: the result is double taxation of distributed earnings.
8. An artificial/juridical “person” endowed with the ability for self-management, that is, the management
structure is at the discretion of the board of directors.
https://www.elcomblus.com/the-nature-and-forms-of-business-organization/
Requirements for Doing Business in the Philippines DEALING WITH LGU.
 A copy of government issued ID.
 A duplicate proposed business name registration form.
 Payment of registration fees fixed on territorial based with documentary stamp tax.
 Complete employee data form.
 Copy of Municipality permission letter.
 Community tax certificate.

FINANCING THE VENTURE

 Capital -refers to the financial resources that businesses can use to fund their operations
like cash, machinery, equipment and other resources. These are the assets that allow the
business to produce a product or service to sell to customers.
https://www.myaccountingcourse.com/accounting-dictionary/capital
What are the 3 sources of capital?
When budgeting, businesses of all kinds typically focus on three types of capital: working capital,
equity capital, and debt capital.

here are many different sources of capital—each with its own requirements and investment goals. They fall into
two main categories: debt financing, which essentially means you borrow money and repay it with interest;
and equity financing, where money is invested in your business in exchange for part ownership.Hun 8, 2015

Understanding IPO and Process of IPO

An initial public offering (IPO) is the process by which a private company “goes public” and sells new
shares on the stock market. An IPO allows a company to unlock new growth and raise capital from public
investors as well as provide private investors with the opportunity to exit their investment and realize a profit.
Hul 12, 2021

https://www.google.com/search?
q=UDERSTANDING+IPO+AND+PROCESS+OF+IPO&nfpr=1&sa=X&ved=2ahUKEwjVt5nr4-7yA

What Is the Role of an Investment Bank?

 Roles of investment banks include the underwriting of new stock issues, handling
mergers and acquisitions, and acting as a financial advisor.
 Investment banks help corporations obtain debt financing by finding investors for
corporate bonds.
 Investment banks guide corporations when going public, raising capital, and through
mergers and acquisitions.
https://www.investopedia.com/ask/answers/042215/what-are-some-roles-investment-bank.asp
The Five C's of Credit?

The five C's of credit is a system used by lenders to gauge the creditworthiness of potential
borrowers. The system weighs five characteristics of the borrower and conditions of the loan,
attempting to estimate the chance of default and, consequently, the risk of a financial loss for
The five C's of credit are used to convey the creditworthiness of potential borrowers.

 The first C is character—the applicant's credit history.

 The second C is capacity—the applicant's debt-to-income ratio.
 The third C is capital—the amount of money an applicant has.
 The fourth C is collateral—an asset that can back or act as security for the loan.
 The fifth C is conditions—the purpose of the loan, the amount involved, and prevailing
interest rates.
What Are the Five C's of Credit?
The five C's of credit is a system used by lenders to gauge the creditworthiness of potential
borrowers. The system weighs five characteristics of the borrower and conditions of the loan,
attempting to estimate the chance of default and, consequently, the risk of a financial loss for
the lender. But what are these five C's? The five C's of credit are character, capacity, capital,
collateral, and conditions.

 The five C's of credit are used to convey the creditworthiness of potential borrowers.
 The first C is character—the applicant's credit history.
 The second C is capacity—the applicant's debt-to-income ratio.
 The third C is capital—the amount of money an applicant has.
 The fourth C is collateral—an asset that can back or act as security for the loan.
 The fifth C is conditions—the purpose of the loan, the amount involved, and prevailing
interest rates.
https://www.investopedia.com/terms/f/five-c-credit.asp

Understanding the Five C's of Credit

The five-C's-of-credit method of evaluating a borrower incorporates
both qualitative and quantitative measures. Lenders may look at a borrower's credit reports,
credit scores, income statements, and other documents relevant to the borrower's financial
situation. They also consider information about the loan itself.

Each lender has its own method for analyzing a borrower's creditworthiness but the use of the
five C's—character, capacity, capital, collateral, and conditions—is common for both
individual and business credit applications.

Is credit using someone else's money?

Interest is what you pay for using someone else's money. You repay money to whoever gave you the
credit card or loan. Credit cards and loans have different interest rates. Look for the “APR.” APR
means annual percentage rate.