G12 REVIEWER-ENTREP-2ND PRELIMS
production, such as land, labor, capital, and
Becoming an Entrepreneur
Businessman
- Starts a business from an existing idea.
- Traditional
- Avoids taking risks.
- Profit Oriented
- Market ’player’
Entrepreneur
- Starts a business from a unique and innovative
idea.
- Revolutionary
- Risk taker
- People(customer) oriented
- Market ‘leader’
What is Entrepreneur?
- Is a person who possesses managerial skills and
decision-making skills needed to run a business
enterprise.
- Managerial skills are developed through
experience, education, and training.
- Should be able to identify market opportunities,
so that available resources can be utilized
efficiently.
- Able to identify external considerations.
- As a leader an entrepreneur is dedicated,
determined, passionate, a go-getter, patient,
and God-fearing.
- Key person of the entire firm
- Create their own motivations and sense of
achievement by accomplishing difficult yet
achievable goals.
- Risk taker and takes into account the business
world’s up and down.
Entrepreneurial Spirit
- Being an entrepreneur runs in the blood.
- Passion may also be sustained and nurtured by
good educational institutions.
- Life choices
Who can be an Entrepreneur?
- Anyone can become an entrepreneur.
- Businesses is made up of different factors of
entrepreneurship.
The Four Factors of Production
1. Land
- A natural resource utilized in business.
2. Labor
- Refers to the human effort exerted in the
productions.
3. Capital
- Pertains to the man-made resources used in
production.
4. Entrepreneurship
John Robinson Lim Gokongwei Jr.
- Named by Forbes as the second richest
businessman in the Philippines.
- Started selling candles and threads at a very
young age to help his family.
- His able to grow his company from a cornstarch
business to malls, condominiums, banks,
telecommunication, and an airline.
“The important thing to know is life will always deal us a
few bad cards. We have to play those cards the best we
can. And we can play to win.”
Why Should You be an Entrepreneur?
- A successful entrepreneur spells Profit, Power,
Prestige, and Privilege
- They must undergo a series of trial and error,
risk, tons of research and years of hard work.
- There is no exact trait or feature to become
successful entrepreneur.
- Studies found common trait and characteristic
shared by successful businessmen.
1. Predisposition to be a boss.
2. Being energetic
3. Willingness to risk money and security
4. Ability to inspire and energize others.
5. Strong willed
6. Willing to devote disproportionate time to
business.
7. Fiercely competitive
8. Never-say die attitude.
Why Study Entrepreneurship 11. Keen Eye for Detail
12. Legitimate
- Tap and nurture unrealized talents and skills.
- No one is above the law.
- Teaches to think outside the box.
- With profit comes an obligation, and
- Creates opportunity.
entrepreneurs should comply with government
- Ensures social justice.
regulations accordingly.
- Give alternative path at any time of our lives.
13. Mindful of Changes in the Environment
14. Networker
The Entrepreneur’s Alphabet
- Love networking and connecting with people.
1. Ability to Organize Resources - Entrepreneurs should be good networkers so
- The ability to identify the needed resources in that they can maximize the opportunity to
the business or the 6M’s – Manpower, increase their businesses' visibility.
Machine, Materials, Money and Moment, - Entrepreneurs build bridges instead of walls.
Methods 15. Organized and is an Organizer.
2. Boldly takes Calculated Risks. 16. Passionate
3. Creative and Innovative 17. Questions the Status Quo.
4. Demands Quality Results - They are change agents who are passionate of
- May seem strict, but the caliber of the end moving ahead of being the cause of change.
result should really matter to them. - They are the movers and shakers and the
- Aims for perfection and quality of all levels of sources of revolution in the industry.
production. 18. Resourceful
5. Excited to Compete. - Always see the glass as half full rather than half
- Competition energizes entrepreneurs. empty
- Use competition as a challenge to improve and - Able to use their imagination to jump over
enhance the commodities they offer to the hurdles and find ways to effectively utilize
public. whatever resources they have to achieve their
6. Finds Opportunity in Crisis desired result.
- Best opportunities arise during difficult 19. Success-oriented
moment. 20. Time Conscious
- Time of crisis may be the best moment to come 21. Undivided Focus
up with a new, profitable creation or innovation - They are focus on their own world and
that responds to emerging needs. achieving their goal.
7. Goal-oriented - When they work, they work. When they rest,
8. Hardworking they rest.
9. Inquisitive when Pursuing Improvements. - Focused and disciplined.
- Are able to ensure that the creations of 22. Visionary
businesses can evolve and withstand the test of - Entrepreneurs know where they are going.
time. - They make things happen.
- They aim at continuous improvement. - They have a clear picture in their mind on what
10. Jack of All Trades kind of future they want and have a great vision
- Are those who want to learn as much as for their business.
possible, so they do not depend on anyone. 23. Winning Attitude
- Entrepreneurs should be flexible and must be - Entrepreneurs are born to win.
familiar with all the processes and the ins and - They are driven by their goal-winning-and even
outs of their company. if they lose, they are able to bounce back.
 24. Xtremely Smart
25. Yearning to Learn
- Entrepreneurs never stop learning.
- They consider life as a continuous learning
process.
- Never stop entertaining new knowledge
26. Zealously Energetic
Starting a Business
Turning Ideas into Reality
- What kind of business is easy to start and is
guaranteed to be successful?
- Launching a business venture depends on
several factor.
a. Your capacity as an entrepreneur
b. The trends in the business
c. Developments in the national and global
economy
- Many successful ventures were built not from
new ideas but what was lacking from the
marketplace.
- Form of problems that people usually
encounter.
Tips for Turning Your Ideas into Reality (p.31)
Factors that You Should Consider Before Starting Your
Own Business:
1. Business Name
- Choose a business name that is appropriate for
your product, easy to read, and easy to
remember.
- Register your business name and secure the
necessary permits in the locality where it would
operate.
2. Kind of Legal Structure
a. Sole Proprietorship
- Easiest legal structure to start.
- Complete control of the business.
- Sole recipient of the profits.
- Fully liable for all the debts that the business
will incur.
- If the business is unable to meet its financial
obligations the creditors can acquire your
personal assets.
- Major obstacle is the ability to raise capital.
b. Partnership
- Enhanced ability to raise money and recruit and
motivate key people.
- Operation is divided among partners.
- Partners are held personally liable for
partnerships' liabilities in the event that the
partnership does not have the ability to settle
its financial obligations.
c. Corporation
- Exists separate from its founders since the
company is owned by its shareholders and run
by a board of directors elected by the
shareholders.
- Primary characteristic of a corporation that
distinguish from other legal structure.
A. Limit a shareholder’s liability to their
amount of investment in the business.
B. If shareholders are active in the
business, they are considered as
employees.
C. A corporation must pay tax on income
as a separate legal entity.
Planning, Organizing and Managing Your Business
Enterprise
I. Planning Your Business
- Simply means thinking ahead (objectives,
strategies, finances, production, marketing,
profit prospects, ad growth possibilities
- Plan remains realistic.
- Planning should be based on your available
resources and should be responsive to the need
of people in general.
- Involves how to attain your goal and the ways
to accomplish such.
- Setting a time frame
- Maintaining customer satisfaction
Basic Planning Principles Applied Particularly to Small
Businesses
1. Planning must be realistic.
2. Planning must be based on felt needs.
3. Planning must be flexible.
4. Planning must start with simple projects.

II. Organizing Your Business Enterprise
- The resources required, the needs of
prospective customers, the strength of
competitors is known already.
- Organization is composed of two or more
persons who work together to achieve a
common set of goals and objectives.
- Organizing is the process of combining and
coordinating resources and activities to
accomplish efficiently and effectively an
organization’s goal and objective.
- Important role of organizing is appropriate
development of human resources.
- Every organization has a structure.
III. Managing Your Business Enterprise
Basic Functions of Management
1. Establish the goal of the business enterprise and
develop plans to attain this goal.
2. Organize people and other resources to achieve
this goal.
3. Lead and motivate people toward the goals of
the enterprise.
4. Maintain sufficient control systems to ensure
that the enterprise is moving toward its goal.
Financial Management, Production, and Marketing for
Your Business Enterprise
I. Financial Management for Your Business
Enterprise
- Financial capital or funds are essential, lifeblood
of the business.
- Need to plan well and control your finances.
- Financial management refers to activities that
are concerned with securing funding and using
it wisely.
- Entrepreneurs should determine best ways to
raise money, efficiently use money and identify
the financial needs of the business.
II. Production of Goods and Services
- The creation of goods and services
- Process of converting economic resources into
goods and services.
- Entrepreneurs are the principal actor.
- Every product produced there is a
corresponding cost incurred referred to as cost
of production.
- The principle of acquiring minimum costs when
producing goods and services while attaining
maximum production.
- Quality is often the name of the game.
III. Marketing of Goods and Service
- Marketing refers to set of activities directed at
facilitating and accomplishing exchange
between sellers and consumers of goods and
services.
- Various functions such as market research,
product development, advertising, customer
service, distribution and selling.
- Consumer oriented
- Marketing plan is important for businesses.