West Visayas State University

Module in
SS 113:
The Entrepreneurial Mind
 Module in
SS 113:
The Entrepreneurial Mind

Prof. Ritchelda P. Aguana-Auro

Dr. Rosemarie M. Dichosa

Prof. Dee Jay A. Larroder

Dr. Teofilo R. Rabanes

 Notes to the Students
This module is a part of the series of Modules for flexible learning spearheaded by
the Office of the Director of Instruction and the Center for Teaching Excellence, West
Visayas State University.
This is meant for SS-113 Entrepreneurial Mind. This course provides a meaning and
attributes of entrepreneurship such as innovativeness, risk-taking, and self-reliance, the
social role and impact of entrepreneurship (CMO NO. 20 SERIES OF 2013). Thus, it
provides students with an understanding of the nature of enterprise and entrepreneurship
and orientates students towards an entrepreneurial mind set. It introduces the role of the
entrepreneur, innovation and technology in the entrepreneurial process. This is purely a
lecture course with no laboratory.

There are 8 Units in this module. They are as listed below.

UNIT 1: Introduction to the study of UNIT 5: Identify and Meet a Market

Entrepreneurial Mind and Need
Entrepreneurial Competencies

UNIT 2: Inside the entrepreneurial UNIT 6. Develop the Marketing Plan

mind: from ideas to reality

UNIT 3: Creating an enterprise UNIT 7. Global Aspects of

entrepreneurship

UNIT 4: Develop a Business Plan UNIT 8. Risk Management

The learning outcomes for SS 113, specified below are unpacked by the specific
objectives of each lesson. Generally, at the end of this module, you must have:

o Understood the key elements of the entrepreneurial mind, and how to align personal
goals with that mind-set;
o used critical thinking skills to identify and evaluate entrepreneurial opportunities,
manage risks, and learn from the results of evaluating the process;
o distinguished and explain the important elements of business planning, managing
rapid growth and overcoming obstacles in an entrepreneurial environment;
o understood the process that enables entrepreneurs with limited resources to
transform simple ideas into sustainable success;
o understood and applied fundamental aspects of entrepreneurial thinking across
disciplines and as a means of personal development; and,
o used critical inquiry skills to identify, interview, and generally build relationships with
local innovators, entrepreneurs, and other community leaders.
 Before you begin learning what the module is about, please be familiar with some
icons to guide you through this instructional tool. You are right now reading the
introduction entitled Notes to the Students. This will be followed by the Table of
Contents.

Pre-activity- In here, you will do an activity that you already know and
is related to the lesson.

Activity - In this part, you will practice what you have learned

Post Activity - You will be tested here and you will be able to know the
gaps in your understanding in this lesson. If you are not satisfied with the
feedback, you may then go back to some points that you may have
missed.

Answer Key shows the feedback that comes after assessment. It can
also be found in every break exercises within the lesson

References list down the resources and links from which the content of
the lesson was based from. These may take the form of books, internet
sites, blogs, videos, photographs, animation, Power point presentations,
icons,

Directions are found inside each lesson that tell you how long you are going to work
on this module. All formative activities must be answered and counter-checked with the
feedback attached. Honesty is a school policy. Be serious about the learning activities you
are working on. It will define who you are and what you will become in the future. Pre-test
and Post-test must be completed as well. At the end of the semester or as instructed
otherwise, you are to submit this module to your subject professor. Inquiries on some
points not fully understood will be made online via the Google Classroom on a scheduled
encounter. This module is a self –contained learning kit with instructions that will guide to
the end.
You are now ready to begin. Carpe Diem! Make your time count. Enjoy!
 Table of Contents
Unit 1: Introduction to the study of Entrepreneurial Mind and Entrepreneurial Competencies
A. Lesson 1. The Entrepreneurial Mind and Its Essential Characteristics
1.1. Entrepreneurs and Entrepreneurship
1.2. Why an Entrepreneurial Mindset is Essential for Business?
1.3. Essential Characteristics of the Entrepreneurial Mind
B. Lesson 2. Personal Entrepreneurial Competencies (PECs) and Skills vis-à-s a
Practicing Entrepreneur in a Place
2.1. Entrepreneurial Competencies
2.2. Important Skills of a Successful Entrepreneur

Unit 2. Inside the Entrepreneurial Mind: From Ideas to Reality

A. Lesson 1: Creativity, Innovation, and Entrepreneurship
1.1. Creativity – A Necessity for Survival
1.2. Can creativity be Learned?
1.3. Creative Thinking

B. Lesson 2. How to enhance Individual creativity and its Barriers

2.1. Enhancing Individual Creativity
2.2. Barriers to Creativity
C. Lesson 3. Creative Process and its Techniques for Improving
3.1. Creative Process
3.2. Techniques for Improving the Creative Process
D. Lesson 4. Barriers to Creativity
Unit 3. Creating an Enterprises
A. Lesson 1: Forms of Business Organizations
1.1. Sole Proprietorship and Partnership
1.2. Corporation and Cooperative
B. Lesson 2. Identifying Business Opportunities in the Environment
2.1. Entrepreneurial Activities
2.2. The Sears story
2.3. Business Opportunities in Rural Communities
2.4. Steps in Market Research
C. Lesson 3. Global Opportunities
3.1. The Nature of International Entrepreneurship
3.2. International versus Domestic Entrepreneurship
3.3. Entrepreneurial Entry into International Business
3.4. Enterprise Development and Competitiveness

Unit 4. Develop a Business Plan

A. Lesson 1. Purposes and Importance of a Business Plan
1.1. Business Plan
1.2. Importance of a Business Plan to an Entrepreneur
B. Lesson 2. Components of a Business Plan
2.1. The Entrepreneur Doing the Road Map
2.2. Contents of a Business Plan
2.3. Marketing Plan
2.4. Marketing Strategies/Sales
2.5. Financial Management/Analysis
C. Lesson 3. How to create an effective business plan?
3.1. Research the business plan
3.2. Available research resources for business plan
 3.3. SWOT Analysis
3.4. Risk Analysis
3.5. Mistakes in Business Planning

UNIT 5. Identify and Meet a Market Need

A. Lesson 1. Identify Your Target Market
1.1. Market Segments
1.2. Customer Profile
B. Lesson 2. Research the Market
2.1. Customer Profile
2.2. Disadvantages of Primary Data
2.3. Six steps of Market Research
C. Lesson 3. Know Your Competition
3.1. Impact of Competition
3.2. Large Retailers
3.3. Other Strategies for Maintaining Loyalty

Unit 6. Develop the Marketing Plan

A. Lesson 1. Importance of a Marketing Plan
1.1. The Marketing Strategy
1.2. Write your Marketing Plan
B. Lesson 2. Product: Identifying the Market Need
2.1. The Marketing concept and the Product
2.2. Consider Branding, Packaging, and Labelling
2.3. Determine a Price for a Product
C. Lesson 3. Distribution and Promotion Strategies
3.1. Distribution Strategies
3.2. Promotion Strategies

Unit 7. Global Aspects of Entrepreneurship

A. Lesson 1. Why Go Global?
1.1. Benefits of Accessing the Global Market
1.2. Cost of Accessing the Global Market
B. Lesson 2. Strategies for Going Global
2.1. Creating a Presence on the Web
2.2. Joint Ventures
2.3. Foreign Licensing
C. Lesson 3. Barriers to International Trade
3.1. Domestic Barriers and International Barriers
3.2. Impact of Trade Barriers
D. Lesson 4. International Trade Agreements
4.1. The World Trade Organization (WTO)
Unit 8. Risk Management
A. Lesson 1. Business Risks
1.1. Major Types of Risks
1.2. Risk Management
1.3. Reducing the Risk
B. Lesson 2. Insure against risks
2.1. Shifting Risks to an Insurance Company
2.2. Life Insurance
2.3. The single premium payment policy
2.4. Bonds
2.4. Non-Life Insurance
C. Lesson 3. Other risks
3.1. Direct and Indirect risks to your business
 3.2. Managing risk in your business

UNIT 1: Introduction to the study of

Entrepreneurial Mind and
Entrepreneurial Competencies

Desired Learning Outcomes

At the end of this module, you are expected to:
1. Define entrepreneurial mind and entrepreneurship in the context of small and medium
scale industries
2. Understand the different entrepreneurial competencies
3. identify areas for improvement, development, and growth
4. align your Personal Entrepreneurial Competencies based on your future business or
career choice, and
5. create a plan of action that ensures success in your business or career choice.

PRE ACTIVITY: Entrepreneurial Mind and

Entrepreneurial Competencies

As part of your initial activity, try to assess your prior knowledge and experience
related to personal entrepreneurial competencies.

Part I. Matching Type

Directions: Match the entrepreneurial competencies in column A with their meaning in
column B. Write the letter of the correct answer on the space provided before each
number.

A B

1. Creative A. makes wise decisions

towards the set objectives

2. Profit-oriented B. strategic thinking and setting of goals

3. Disciplined C. trusting in one’s ability

4. Sound decision maker D. adoptable to change

5. Possess people skills E. innovates to have an edge over other

competitors
6. Excellent Planner F. solid dedication
 7. Confident G. skillful in record keeping

8. Hardworking H. always sticks to the plan

9. Ability to accept change I. work diligently

10. Committed J. effective and efficient

communication

K. always looking for an opportunity

to have/earn income.

How well did you do?

How do you feel about the test? Did it make you feel confident or insecure? Your feelings
will be your guide to go slow or breeze through this module. Below is the answer key of
TASK 1.

Answers: Task 1

1. E 2. K 3. H 4. A 5. J 6. B 7. C 8. I 9. D 10. F

A perfect 10 makes you well-known entrepreneur someday. Please continue to study this
module as a review. If you go lower than 7, studying this module is a must.
7-9 Great Entrepreneur
6-5 Average Entrepreneur
0-5 Novice Entrepreneur

Now let us begin the exploration of this Module.

Lesson 1. The Entrepreneurial Mind and Its Essential

Characteristics
”Huwag tayong mahihiyang magbenta-benta
Tandaan natin na hindi tayo mapapakain ng ating hiya”
 Introduction:

T
his module discusses the introduction of the study
of Entrepreneurial Mind. Here, you will learn about
the difference between entrepreneurial mind and
entrepreneurship, as well as the essential characteristics of
entrepreneurial mind and its competences. You will be
doing some activities wherein you will be assessing your
personal entrepreneurial competencies. Likewise, this module will encourage you to
think about your personal entrepreneurial competencies. You will be learning at the
same time a light background of entrepreneurship and its role in the business community
and the economic and social development of an individual.

To begin with this module, let us first understand entrepreneurs and

entrepreneurship.

Entrepreneurs are those people or individuals with the skills and capabilities to
see and evaluate business opportunities. They are the ones who can strategically
identify products or services needed by the community, and have the capacity to deliver
them at the right time and at the right place.

Entrepreneurs are agents of economic change; they organize, manage, and

assume risks of a business. Some of the good qualities of entrepreneurs are:
opportunity-seeker, risk-taker, goal-setter, excellent planner, confident problem-solver,
hardworking, persistent and committed.

Entrepreneurship, on the other hand, is not just a simple business activity but
a strategic process of innovation and new product creation. Basically, entrepreneurship
is both an art and science of converting business ideas into marketable products or
services to improve the quality of living.

Now that you have background knowledge about entrepreneurs and

entrepreneurship, you can now proceed in assessing your Personal Entrepreneurial
Competencies (PECs). Always remember that successful entrepreneurs continuously
develop and improve their PECs.

To start with, let us find out the competencies you will have gained upon
completion of this module.
 When we say Entrepreneurial Mind, it is a specific state
of mind which orientates human conduct towards
entrepreneurial activities and outcomes. When we say
mind – it is the ability to think and imagine.

So, Mindset is a way of thinking and opinions of a

person. Or an entity from belief that we have, the criteria
are - expectations, attitude, habits, decisions, and opinions
that we spend in looking at ourselves.

Why an Entrepreneurial Mindset is Essential for Business?

Here are some of the reasons:

If you’re starting out in the business world, you might feel a little overwhelmed with all of
the information out there. You’ve probably been doing plenty of research, and you might’ve
come across the idea of an entrepreneurial mindset, which is, above all, a mindset that will help
you to succeed in the world of business. The essentials of an entrepreneurial mindset are,
among other characteristics, the lack of fear when it comes to innovation and taking risks, and
the ability to take failures into stride. If you consider yourself an entrepreneur, it’s important to
know why entrepreneurial mindset is important for business.

1. Thinking like an entrepreneur will help you right from the beginning

You have a plan for your business, you’ve figured

out all the details, and you’re ready to start making
money, but it’s normal to feel worried or anxious about
your new venture. Here’s where you should begin to
channel your inner entrepreneur! Creating that
entrepreneurial mindset will help you to think about
what you’re doing and why. It will help you to know
where you would like your business to lead you, and
what risks you’re willing to take to succeed. If you know the answers to these questions, you’ll
be ready to tackle all the challenges your new business throws at you.

2. An entrepreneurial mindset will help you in other areas of your life

Being willing to take risks and accept failure is a unique skill that isn’t relevant solely in the
business world. Incorporating an entrepreneurial mind set into your everyday life will help you to
minimize the importance of failure and rejection in your life. It will also help you to keep moving
forward even when things are difficult. Additionally, being able to plan ahead and foresee
potential problems (a key part of an entrepreneurial mind set) will help you to live a more
organized, less stressful life. In turn, this will help you to better run your business.

3. Having an entrepreneurial mindset will encourage creativity

 You’ve started your business, and things are going well, for the most part. There’s just that
one problem…

If you’re open to innovation and willing to take risks, you’ll

be more likely to think outside the box. If something isn’t
working well, there may be more than one fix, and you
shouldn’t always fall back on the simplest or safest method.
Critical thinking is the key to a successful business, and being
willing to find creative solutions even if it might mean more
work will help your business greatly in the long run.

4. People trust others who seem to know what they’re doing

The old saying “fake it ‘til you make it” is especially true in
business. If you do your best to think, feel, and act like an
entrepreneur, people will treat you like one. By channeling an
entrepreneurial mind set, you’ll be able to make new contacts with
ease.

5. Thinking like an entrepreneur will enable you to take healthy breaks

Don’t overextend yourself as rest and relaxation are important. Successful entrepreneurs
know that focusing entirely on business is a sure-fire way to burn out. Go on an international
trip. Relax and visit new destinations. You might be surprised by the ideas and inspiration you
can get by experiencing new cultures. If you’re thinking like an entrepreneur, you’ll know that
taking regular breaks will actually benefit your business in the long run and that you needn’t feel
guilty for indulging once in a while.

Incorporating the an entrepreneurial mindset into your everyday life will help you to
minimize the importance of failure and injection in your life

Essential Characteristics of the Entrepreneurial Mind

 Creativity
It is the use of the imagination or original ideas, especially in the
production of an artistic work.
The creative mind conceptualizes and designs a
product that consumers find some use for. It
likewise produces a product that is pleasing to see,
touch, smell, hear and taste. The seed of
entrepreneurship is the ability to see things
differently. Whether it’s with new products or new
processes, entrepreneurs are driven by uncanny
knack to see holes in the marketplace and devise
innovations to fill them.

 Suspicion of predictors
 Entrepreneurs tend to labor under the assumption that data is the sole
predictors of an outcome. Especially in new markets and with new products
where data is largely interpretive or extrapolated, entrepreneurs are undaunted
by the typical predictors that may put off fainter hearts .

 Comfort with uncertainty.

Similarly, a distrust of prediction and analysis creates an atmosphere where
uncertainty rules. Indeed, uncertainty is the very essence of entrepreneurship.

 Openness to Experimentation
A comfort with experimentation goes beyond educated trial and error. The
ability to experiment with, products, processes and outcomes, no matter where
the results may lead, is the key element of this quantity.

 Functional Humility
Egos can destroy the very best ideas. Entrepreneurs who are committed to
solving a business problem or reinventing a product or service display a
functional humility.

“Entrepreneurs must see things from different perspectives, willing to try new things,
willing to tolerate a higher level ambiguity, do not fear failure, seek and embrace new
norms, and most importantly to realign our mental attitude.”

ACTIVITY PROPER 1: The Entrepreneurial Mind

and Its Essential Characteristics

Directions: The following are guide questions which cover the entire module. Answer the
questions and discuss / share these to your classmates.
 A. Why entrepreneurial activities are important to social development and economy
progress. Explain.
B. If you were given the opportunity to own a business, do you think you will be
confident enough to manage it? Why?
C. What do you think are the most important competencies one must possess in
order to be successful in running a chosen business? Why?
D. Name one successful entrepreneur that you know in your locality. What do you
think are the entrepreneurial competencies he/she possessed? Make sure you
will be able to share with the class the PECs that made them successful.

How was your experience in answering the guide questions with your
classmates? Were you able to benefit from them? What were the insights you have
realized?
Lesson 2.Personal Entrepreneurial Competencies (PECs) and
Skills vis-à-s a Practicing Entrepreneur in a Place
“ Walang masama gumasta, kumain, at magpakasaya at mag post ng
#BLESSED, pero dapat tayo ay bayad sa mga pinagkakautangan natin”

The term “competence”

refers to the combination of
Knowledge, Skills, Motive,
Attitude and Habits. Every role
requires some particular

Entrepreneurial competencies is the important characteristics that should be

possessed by an individual in order to perform entrepreneurial functions effectively.
Competencies are the combination of knowledge, abilities, and attitudes needed to
accomplish a role efficiently

In this module, you will learn some of the most important characteristics
(distinguishing feature of a person), attributes (characteristic or quality of a thing),
lifestyle, skills and traits of a successful entrepreneur or an employee to be successful
in a chosen career.

Below are few important characteristics / traits / attributes of the good entrepreneur:

 Hardworking: One of the important characteristics of a good entrepreneur

is hardworking. This means working diligently and being consistent about
it. Hardworking people keep improving their performance to produce good
products and/or provide good services.

 Confident: Entrepreneurs have self-reliance in one’s ability and judgment.

They exhibit self-confidence to cope with the risks of operating their own
business.

 Disciplined: Successful entrepreneurs always stick to the plan and fight

the temptation to do what is unimportant.

 Committed: Good entrepreneurs assume full responsibility over their

business. They give full commitment and solid dedication to make the
business successful.

 Change occurs frequently: When you own a business, you should cope
with and thrive on changes. Capitalize on positive changes to make your
business grow.

 Ability to accept change: Nothing is permanent but change.

 Creative: An entrepreneur should be creative and innovative to stay in the

business and in order to have an edge over the other competitors.

 Initiative: An entrepreneur takes the initiative. You must put yourself in a

position where you are responsible for the failure or success of your
business.
  Profit-oriented: An entrepreneur enters the world of business to generate
profit or additional income. The business shall become your bread and
butter. Therefore, you must see to it that the business can generate income.

 Persistent: An entrepreneur takes repeated

actions to overcome obstacles that get in the way
of achieving goals and ensure efforts to solve a
problem or barrier.

 Information seeker: An entrepreneur takes

action to help reach objectives. He/she
personally undertaking a research or analysis to
find out answers of some problems.

 Problem Solver: An entrepreneur identifies and applies new and

potentially unique ideas to reach the goals.

 Assertive: An entrepreneur confronts problems and issues with others

directly, speaks politely but firmly and tells others clearly what they have to
do.

 Concern for others’ Welfare: An entrepreneur takes action to improve

the welfare of employees and their families or responds positively to
employees’ specific needs.

Listed below are the important skills of a successful entrepreneur:

Excellent planner: Planning

involves strategic thinking and goal
setting to achieve objectives by carefully
maximizing all the available resources. A
good entrepreneur develops and follows
the steps in the plans diligently to realize
goals. A good entrepreneur knows that
planning is an effective skill only when
combined with action.

Possesses people skills: This is a very important skill needed to be successful in

any kind of business. People skills refer to effective and efficient communication
and establishing good relationship to the people working in and out of your
business. In day-to-day business transactions, you need to deal with people. A well-
developed interpersonal skill can make a huge difference between success and
failure of the business.

Sound decision maker: Successful entrepreneurs have the ability to think quickly
and to make wise decisions towards a pre-determined set of objectives. No one can
deny that the ability to make wise decisions is an important skill that an
entrepreneur should possess. Sound decisions should be based on given facts and
information and lead towards the pre-determined objectives.
 ACTIVITY PROPER 2: Personal Entrepreneurial
Competencies (PECs) and Skills vis-à-s a Practicing
Entrepreneur in a Place

To firm up what you have learned and have a better appreciation of the different
entrepreneurial competencies, read the PECs checklist below, then answer the same.

Task 1: PECs Checklist

Directions: Using the PECs checklist, assess yourself by putting a check ()

mark in either strengths or weakness/development areas column. Interpret the
results by counting the total number of check marks in each of the columns. After
accomplishing the checklist, form a group (4 members) and share your insights
on the result of the personal assessment.

Table 1: PECs Checklist

Personal Assessment in terms of:

Personal Entrepreneurial
Competencies (PECs) of Weakness /
Strengths
an Entrepreneur Development Areas

Hardworking
- Works diligently

Confident
- Self-reliance in one’s ability

Disciplined
- Always stick to the plan

Committed
- Solid dedication

Ability to accept changes

- Adaptable
Creative
- Innovative to have edge over
other competitors
Profit-oriented
- Always looking for an opportunity
to have/earn income

Excellent planner
- Strategic thinking and setting of
goals

Possess people skill

- Effective and efficient
communication skills and relates
well to people
 Sound decision maker
- Makes wise decisions towards
the set objectives

TOTAL

Interpretation or Insight:

How was your experience in discovering the strengths and the areas you
need to develop? Did you gain a valuable experience in exchanging insights with
your classmates? To learn more and deepen your understanding of PECs, do task
2 below.
Task 2 : Interview

Directions: In your place, interview a successful entrepreneur. Focus your

questions on PECs and other business-related attributes that helped them
become successful. Analyze the results of the interview and reflect on the
similarities and/or differences. Write your answer on a separate sheet of paper.

Sample Interview Guide

Name of Proprietor/Practitioner: _
Age: _________ Number of Years in Business: ___________
Business Name: _
Business Address: _

1. What preparations did you make before you engaged in this type of business
or job?

.
2. What special skills and characteristics do you have that are related with
your business or job?

3. How did you solve business-related problems during the early years of your
business operation?

4. Did you follow the tips from a successful businessman or practitioner before
you engaged in your business?
 .

5. What best business practices can you share with aspiring

entrepreneurs?

6. What do you think are the salient characteristics, attributes, lifestyle, skills and
traits that made you successful in your business or job?

Task 3. Directions: Copy the tables below in your notebook or in a separate

sheet of paper. Gather the needed information from the interview to supply
answer/s to row 1 in the table below, after which, fill out the second row with
your PECs.

Personal
Entrepreneurial Characteristics Attributes Lifestyles Skills Traits
Competencies

Successful
Entrepreneur
in your place

My PECs

Characteristics- a feature or quality belonging typically to a person, place, or thing and serving
to identify it. Ex. Trusting, sociable, fearless, risk taker
Attributes - a quality or feature regarded as a characteristic or inherent part of someone or
something. For example, someone might be labeled beautiful, charming, funny, or
intelligent.
Trait - is an ingrained characteristic or habit that is difficult to learn or unlearn, like Shyness or
confidence.
Skills- are things you've learnt through work, training or education, or general life experience.
Lifestyle (entrepreneurship) - means you create a business around the kind of lifestyle you
want. It's not that you work in your business and then come home and live.
For example Professional blogging. Many bloggers now make their living
through blogging.
Using the information on the table above, analyze and reflect on the similarities and
differences in your answers. Put your reflection on the table you copied in your notebook or in a
separate sheet of paper. Write your conclusion on the space provided.

Personal
Entrepreneurial Similarities Differences
Competencies
Characteristics

Attributes Lifestyles

Skills

Traits

Conclusion:

__________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________.
 References

https://www.slideshare.net/monirbaalld/entrepreneurial-competencies-
81061658

module-1-personal-entrepreneurial-competencies

https://www.youtube.com/watch?v=0DYFDK8r9s0

https://engineeringmanagementinstitute.org/entrepreneurial-mindset-
essential-business/