● Entrepreneurial activities today have
become very important and are keys
to economic development Growth,
and industrial development,
including employment generation,
depend upon the entrepreneurial
behavior of a country.
● Entrepreneurs are the reason for a
large quantity of highly developed
industries which result in greater
employment opportunities for
unemployed youth, increase in per
capita income, higher standard of
living, and increased individual
saving revenue to the government in
the form of income tax, value added
tax, export duties, import duties, and
balanced regional development.
Relevance of Entrepreneurship to an
Organization
1. Development of managerial
capabilities
2. Creation of organizations
3. Improving the standard of living
4. Means of economic development
Concept of Entrepreneurship
● The word "entrepreneur was derived
from the French verb enterprendre,
which means to undertake. This
refers to those who undertake the
risk of the new enterprise.
● An enterprise is created by an
entrepreneur and the process of its
creation is called entrepreneurship.
● Entrepreneurship employs what
Schumpeter called the "gale of
creative destruction” to replace
wholly or partly inferior innovations
across markets and industries This
destruction simultaneously creates
new products and new business
models.
● Entrepreneurship is a process of
actions of an entrepreneur who is
always in search of something new
to exploit new ideas into gainful
opportunities by accepting the risk
and uncertainty of the enterprise.
● Entrepreneurship ranges in scale
from solo projects (even involving
the part-time entrepreneur) to major
undertakings that create many job
opportunities.
● Entrepreneurship is not so much a
skill as a habitual state of mind.
● When entrepreneurship describes
activities within a firm or large
organization, it is referred to as
intrapreneurship. This may include
corporate venturing when large
entities spin-off organizations.
● Entrepreneurs are innovators, willing
to take risks and generate new ideas
to create unique and potentially
profitable solutions to modern-day
problems
● Entrepreneurial activities can be
incremental or disruptive.
● Incremental innovations are a
number of small changes that
transform process flow while
disruptive innovations are entirely
new approaches.
MODULE 1: ENTREPRENEURSHIP
PRINCIPLES AND CAREER
❖ ENTREPRENEURSHIP
- is a complex phenomenon that is
influenced by the interplay of a wide
variety of factors that include
personality and environmental
factors.

FACTORS AFFECTING
ENTREPRENEURSHIP
1. PERSONALITY FACTORS
(a) Initiative - does things before being
asked
(b) Proactive - identifies and utilizes
opportunities
(c) Perseverance works against all odds to
overcome obstacles and is never
complacent with success
(d) Problem-solver - develops and maintains
a relationship with customers and financers;
conceives new ideas and introduces
innovative solutions
(e) Persuasion - convinces customers and
financiers to patronize his business
(f) Self-confidence - makes decisions and
sticks to his decisions
(g) Self-critical - learns from his mistakes
and from the experiences of others
(h) A Planner - collects information,
prepares a plan, and monitors performance)
(i) Risk-taker - is willing to take calculated
risks
2. ENVIRONMENTAL FACTORS
- These factors relate to the
conditions in which an entrepreneur
has to work. Environmental factors
such as political climate, legal
system, economic and social
conditions, and market situations,
contribute significantly to the growth
of entrepreneurship.
- For example, political stability in a
country is absolutely essential for
smooth economic activity. Frequent
political protests, and strikes, hinder
economic activity and
entrepreneurship Unfair trade
practices, and irrational monetary
and fiscal policies, are a roadblock
to the growth of entrepreneurship.
- Higher-income levels of people,
desire for new products, and
sophisticated technology, the need
for faster means of transport and
communication, are factors that
stimulate entrepreneurship
- Thus, it is a combination of both
personal and environmental factors
that influences entrepreneurship and
brings in desired results for the
individual, the organization, and
society.
CORE COMPETENCIES IN
ENTREPRENEURSHIP
1. ECONOMIC AND DYNAMIC
ACTIVITY
- Entrepreneurship is an
economic activity because it
involves the creation and
operation of an enterprise
with a view to creating value
or wealth by ensuring
optimum utilization of scarce
resources, This
value-creation activity is
performed continuously in
the midst of an uncertain
business environment.
Hence, entrepreneurship is
regarded as a dynamic force.
2. INNOVATION
- Entrepreneurship involves a
continuous search for new
ideas. It compels an
individual to continuously
evaluate the existing modes
of business operations so
that more efficient and
effective systems can be
evolved and adopted.
- In other words, entrepreneurship is a
continuous effort for
synergy(collaboration/teamwork) to
ensure optimization of performance
in organizations.
3. PROFIT POTENTIAL
- Profit potential is the level of
return or compensation to the
entrepreneur for taking on
the risk of developing an idea
into an actual business
venture.
- Without profit potential, the
efforts of entrepreneurs will
be merely an abstract and a
theoretical leisure activity,
4. RISK BEARING
- The essence of
entrepreneurship is the
willingness to assume risk
arising from the creation and
implementation of new ideas.
New ideas are always
tentative, and their results
may not be instantaneous
and positive.
- An entrepreneur has to have
the patience to see his/her
efforts bear fruit. In the
intervening period, the time
gap between the conception
and implementation of an
idea and its results, an
entrepreneur has to assume
risk If an entrepreneur does
not have the willingness to
assume risk, he/she will
never succeed.
FUNCTIONS AND TYPES OF
ENTREPRENEURS
1. INNOVATION
- An entrepreneur is
basically an innovator who
tries to develop new
technology, products, and
markets.
- Innovation may involve
doing new things or doing
existing things differently.
An entrepreneur uses
his/her creative faculties to
do new things and exploits
opportunities in the
market.
- He/She does not believe in
the status quo and is
always in search of
change.
2. ASSUMPTION OF RISK
- An entrepreneur by
definition is a risk-taker
and not a risk shirker.
He/She is always prepared
for assuming losses that
may arise on account of
new ideas and projects
undertaken by him/her.
- This willingness to take
risks allows an
entrepreneur to take
initiative in doing new
things and marching
ahead in his/her efforts.
3. RESEARCH
- An entrepreneur is a
practical dreamer and
does a lot of groundwork
before taking a leap in
his/her ventures.
- In other words, an entrepreneur
finalizes an idea only after
considering a variety of options,
analyzing their strengths and
weaknesses by applying
analytical techniques, testing
their applicability, supplementing
them with empirical findings, and
then choosing the best
alternative.
- It is then that he/she applies
his/her ideas in practice.
4. DEVELOPMENT OF
MANAGEMENT SKILLS
- The work of an entrepreneur
involves the use of managerial
skills which he/she develops
while planning, organizing,
staffing, directing, controlling, and
coordinating the activities of the
business.
- His/Her managerial skills get
further strengthened when he/she
engages himself/herself in
establishing equilibrium between
his/her organization and its
environment.
5. OVERCOMING RESISTANCE TO
CHANGE
- New innovations are generally
opposed by people because they
make them change their existing
behavior patterns. An
entrepreneur always first tries
new ideas at his/her level.
- It is only after the successful
implementation of these ideas
that an entrepreneur makes
- these ideas available to others for
their benefit. In this manner, an
entrepreneur paves the way for
the acceptance of his/her ideas
by others. This is a reflection of
his/her willpower, enthusiasm,
and energy which helps him/her
in overcoming society's
resistance to change.
6. CATALYST OF ECONOMIC
DEVELOPMENT
- An entrepreneur plays an
important role in
accelerating the pace of
economic development of
a country by discovering
new uses of available
resources and maximizing
their utilization Mercury
Drug created a reputation
that every Filipino
household could rely on,
and their was a store in
nearly every town and city
across the country. There
are about 700 Mercury
stores, some of which are
under franchise. All these
fulfilled Mariano Que's
goal of making safe
medication available and
accessible to every Filipino
community
TYPE OF ENTREPRENEURS
1. INNOVATIVE
ENTREPRENEURS
- These entrepreneurs have the
ability to think of newer, better,
 - and more economical
ideas for business
organization and
management. They are
the business leaders and
contributors to the
economic development of
a country.
- Inventions like the
introduction of the small
car 'Nano by Ratan Tata,
organized retailing by
Kishore Biyani, and
making mobile phones
available to the common
man by Anil Ambani are
the works of innovative
entrepreneurs.
2. IMITATING ENTREPRENEURS
- These entrepreneurs are people
who follow the path shown by
innovative entrepreneurs. They
imitate innovative entrepreneurs
because the environment in
which they operate is such that it
does not permit them to have
creative and innovative ideas on
their own
3. FABIAN ENTREPRENEURS
- These types of entrepreneurs are
skeptical about the changes to be
made in the organization. They
do not initiate any inventions but
follow only after they are satisfied
with their success rate.
- They wait for some time before
the innovation becomes
well-tested by others and do not
-
result in a huge loss due to its
failure
4. DRONE ENTREPRENEURS
- A drone is a person who lives on
the labor of others. Drone
entrepreneurs are those
individuals who are satisfied with
the existing model and speed of
business activity and show no
inclination in gaining market
leadership.
- In other words, drone
entrepreneurs are die-hard.
conservatives are even ready to
suffer the loss of business.
5. SOCIAL ENTREPRENEURS
- Social entrepreneurs drive social
innovation and transformation in
various fields including education,
health, human rights, workers'
rights, environment, and
enterprise development They
undertake poverty alleviation
objectives and dare to overcome
traditional business practices and
innovate with the zeal of an
entrepreneur.
JOB OPPORTUNITIES
1. MID-LEVEL MANAGEMENT
- At big companies, the
C-level folks develop
ideas, the ground force
does the work, and
mid-level management
converts the idea into
execution. Graduates with
entrepreneurial degrees
 - are well suited for this
opportunity.
2. BUSINESS CONSULTANT
- Businesses today need
consultants who can go to a
client site, identify problems and
fix them. That is what an
entrepreneur does, and that is
why this job is a perfect
opportunity. Entrepreneurship
graduates are trained to help
identify things that others may not
pick up. They are also trained to
know how to fix them.
3. SALES
- Entrepreneurship graduates can
work in sales or run the
department of any business. It is
a requirement for
Entrepreneurship graduates to
have the know-how to represent
a company, manage accounts,
and follow up on leads.
4. RESEARCH AND
DEVELOPMENT
- A good qualification to work in
R&D is training and education on
an understanding of business
concepts, procedures, practices,
and entrepreneurship.
5. NOT-FOR-PROFIT
FUNDRAISER
- Being able to raise funds requires
understanding the importance of
business and networking
relationships. This is a great
- place for someone with a degree
in entrepreneurship because
his/her experiences in studying
advanced concepts can be used
to his/her advantage on the job.
6. TEACHER
- Those with entrepreneurship
degrees are qualified to teach the
core subjects in Senior High
School and teach students
entrepreneurial skills. They can
also teach the benefits of math to
business, history to innovation,
and literature to persuasive
advertising.
7. RECRUITER
- College graduates who had
courses that cover operations
management, leadership, and a
variety of others, and those with
entrepreneurship degrees, most
likely have a keen sense of what
type of person is needed to fill us
a position. Companies who use
recruiters rely upon someone
who is not just people-savvy, but
also one who has an in-depth
business sense as well
8. BUSINESS REPORTER
- Entrepreneurship graduates can
write articles, or pick up a quick
class to learn how to write
articles. They can take a prime
position to take the lead in
covering a local business beat.
Understanding the field and
concepts of business can be
used to make the business
section much more interesting and
appealing,
SOME MYTHS ABOUT
ENTREPRENEURSHIP
1. Entrepreneurs, like leaders, are born,
not made This does not hold true for the
simple reason that entrepreneurship is a
discipline comprising of models,
processes, and case studies. One can
learn about entrepreneurship by
studying the discipline.
2. Entrepreneurs are academic and
social misfits. Education makes an
entrepreneur a true entrepreneur.
Diosdado Banatao, a Filipino version of
Bill Gates, took up electrical engineering
and eventually graduated cum laude.
Thereafter, he pursued and completed a
Master's Degree in Electrical
Engineering and Computer Science at
Stanford University.
He developed the single-chip controller
that provided the data-link control and
the transceiver in the first 10-Mbit
Ethernet CMOS. But, this description
does not apply to everyone. Bill Gates
has been a school dropout and so was
perceived to be an academic misfit. But
not all dropouts like Bill Gates succeed
as entrepreneurs.
3. To be an entrepreneur, one needs
money only. Finance is the lifeblood of
an enterprise to survive and grow. But
for a good idea whose time has come,
money is not a problem. Alfredo Yao is
another rags-to-riches tale of a
self-made businessman who rose from
poverty through hard work and
determination. Alfredo Yao started
concocting fruit juices in his own kitchen
and launched the Zest-o orange drinks
which became an instant hit.
4. To be an entrepreneur, a great idea is
the only ingredient. A good or great idea
shall remain an idea unless there is a
proper combination of all the resources
including management. Tony Tan
Caktiong ventured into the food
business by buying an ice cream parlor
franchise from the once-famous
Magnolia Ice Cream House. The once
nondescript ice cream kiosk became
Jollibee Food Corporation and braved
the arrival of the McDonald's fast-food
chain in the Philippines in 1981
5.One wants to be an entrepreneur as
having no boss is great fun. It is not only
the boss who is demanding: even an
entrepreneur faces demanding vendors,
investors, bankers, and above all
customers. Henry Sy, Sr. came to be the
founder of the Philippines ' largest
retailing company known as SM. The
acronym stands for Shoe Mart, the
name of the small shoe store business
he started in 1958 at the Avenida, which
was Manila's most popular commercial
district during the post-war era.
Initially, however, the young
businessman encountered difficulties in
finding a local shoe manufacturer who
would cooperate with his ideas on the
kind of shoes to sell. He was quite
determined and confident in pursuing
his plans because they were mostly
based on his own research. He
continuously learned from his
customers, his employees, and his
suppliers and practically studied the
growing needs of the Philippine market.