1. Define entrepreneur and entrepreneurship.

An entrepreneur is an individual or a team thereof, having an innovative idea and takes

every step to turn the idea into reality, while bearing the risk. Entrepreneurship on the
other hand, is the process of starting and running a business of providing creative
products and services.

2. Enumerate and explain briefly each of the steps in enterprise creation and development.

There are four (4) steps in enterprise creation and development. These are:
Problem Identification

Recognition of a felt -need within a community one or more persons perceive that a
need/opportunity exists in the community.

Community Mobilization -gathering of human, physical, financial and technological

resources. People and organizations are mobilized. A tailor made network is formed.
Alternative ideas evaluated. Additional documentation created, e.g., feasibility study.
Bank account opened.

Community Action - The enterprise is created as a legally identifiable organization

(boundaries). Contracts are arranged with providers of resources (exchange). Decisions
on responsibilities and allocation of tasks are made. Any training necessary to turn the
idea into practice is organized and implemented. Control and accountability measures
are established. Professionalization of roles, responsibilities, structures, procedures and
management is made. Financing is arranged: entirely founder dependent, mixed finance
(a combination of funding sources, and revenue generation),

Community Reflection - Collection of performance indicators; outcomes evaluated and

feedback to stakeholders is done. Decisions are made concerning future direction of
enterprise. There is recycling and redeployment of resources.

3. State Republic Act 6977.

Is an act to promote, develop and assist small and Medium scale enterprises (SMEs)
through the creation of a Small and Medium Enterprise Development (SMED) Council,
the establishment of a Small Business Guarantee and Finance Corporation (SBGFC), the
mandatory allocation of credit resources to small Enterprises and the rationalization of
government assistance programs and agencies Concerned with the development of
SMEs. To effectively spur the growth and development of small and medium enterprises
throughout the country, and to carry out the policy declared in this Act. A Small and
Medium Enterprise Development (SMED) Council is hereby created.
4. List down and explain each of the management principles in managing a small business.

Planning- in this principle the entrepreneur is deciding in advance what to be done in

future. This involves determination of goals as well as the activities required to be
undertaken to achieve the goals. For example, your goal is to improve company sales.
For you to achieve you’re goal the steps you need to do is to increase the advertising,
inventory, and sales staff. By this you will reach your goal.

Organizing- here, the entrepreneur deals with decision-making and how to use
resources to get objectives accomplished

Directing- if you want a success in your company you as a leader you should know how
to influence, guide supervise, and motivate your staff for the achievement of
organizational goals.

Controlling- is setting procedures to stay on top of progress. It is concerned with the

many ways to keep an eye on how the business is doing. This principle includes setting
standards, measuring actual performance and taking corrective action in decision
making.

Staffing- it is the operation of recruiting the employees by evaluating their skills and
knowledge before offering them specific job roles accordingly. The main goal of staffing
is to fill the various roles within the company with suitable candidates.

5. Enumerate the grass-roots fundraising ideas.

 Ask at every opportunity
 Raffle Draws
 Food and Wine Tasting
 Song
 Phone-a-thons
 Benefit Concerts and Performance
 Dinner
 Ads/Ad Books
 Flowers
 Rummage Sales
 Baby Contests
 BINGO
 Dance-for a-cause