Entrepreneurship

Lesson 1:
Relevance of Entrepreneurship to an Organization

1. Development of Managerial Capabilities- this means that one of the benefits an

entrepreneur gets is to develop his managerial skills.
2. Creation of Organizations- which means that because of entrepreneurship many
organizations will exist.
3. Improving standard of living- this means that entrepreneurship can lift up the economic
status of an individual.
4. Means of economic development- this means that not only the life of the entrepreneur is
improved but also the society where the business is located.

Concept of Entrepreneurship

 The word entrepreneurship was derived from the French verb entreprendre which means
“to undertake”.
 This is pinpointing to those who “undertake the risk of enterprise”.
 The enterprise is created by an entrepreneur and the process is called entrepreneurship.
 Entrepreneurship are innovators, willing to take risk and generate new idea to make it
unique and profitable solutions to the present-day problems.


Factors Affecting Entrepreneurship

1. Personality Factors which include:

a. Initiative – which means doing things even before being told.
b. Proactive - which means he can classify opportunities and seize it.
c. Problem Solver – which means he can retain good relations with other people.
d. Perseverance – meaning he will pursue things to get done regardless challenges.
e. Persuasion – means that he can make entice people to buy even if they don’t want.
f. A Planner – meaning he makes plan before doing things and do not fake monitor it.
g. Risk taker – which means that he is willing to gamble but he will calculate it first.

2. Environmental Factors which include:

a. Political
b. Climate
c. Legal System Economic
d. Social Conditions
e. Market Situation

Common Competencies in Entrepreneurship

1. Decisive – an entrepreneur must be firm in making decisions

2. Communicator – an entrepreneur must have a convincing power
3. Leader – an entrepreneur must have the charisma to obeyed by his employees
4. Opportunity seeker – an entrepreneur must have the ability to be the first to see business
chances.
5. Proactive – controlling a situation by making things to happen or by preparing for possible
future problems.
6. Risk Taker – they have the courage to pursue what is their business ideas.
7. Innovative – the entrepreneurs have big business ideas; they do not stop improving and
thinking of new worthwhile ideas for their business.

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 limited resources.
2. Innovative – entrepreneurs constantly look for new ideas, thus he needs to be creative.
3. Profit Potential – meaning the entrepreneur can be compensated by his profit coming from
the operation.
4. Risk bearing – meaning the entrepreneur needs to gamble but wise enough to offset the
risk.

Types of Entrepreneurs

1. Innovative Entrepreneur – they are those who always make new things by thinking of new
ideas.
2. Imitating Entrepreneur – they are those who don’t create new things but only follow the
ideas of other entrepreneurs.
3. Fabian Entrepreneurs – they are those skeptical. They don’t initiate but follow only after
they are satisfied.
4. Drone Entrepreneur – they are those who lives on the labor of others. They are die-hard
conservative even ready to suffer the loss of business.
5. Social Entrepreneur – they are those who initiate changes in the various fields such as;
education, health, human rights, environment and enterprise development.

Career Opportunities of Entrepreneurship

1. Business Consultant – with the expertise of the entrepreneur he can be a very good source
of advices to other entrepreneurs and would be business man.
2. Teacher – a graduate of an entrepreneurship can be using his knowledge in teaching.
3. Researcher – the entrepreneur can be employed as researcher by an enterprise.
4. Sales – the entrepreneurship graduate can apply as salesman.
5. Business Reporter – the entrepreneur being expert in the field, he can be employed as a
business reporter.

Types of Entrepreneur

1. Innovative Entrepreneurs – have the ability to think newer, better and more economical
ideas.
2. Imitating – these are people who follow the path show by innovative entrepreneurs.
3. Fabian Entrepreneurs – are skeptical about changes to be made in the organization.
4. Drone Entrepreneurs – are person who lives on the labor of other.
5. Social Entrepreneurs – are people who drive social innovation and transformation in various
fields, including education, health, human right, and may others.
 Lesson 2:
Recognize a Potential Market

Entrepreneurial Ideas
 The creation of an entrepreneurial ideas leads to the identification of entrepreneurial
opportunities, which in turn results in the opening of an entrepreneurial ventures.
 Aduana 2017

Creation of Identification of Opening of

Entrepreneurial Entrepreneurial Entrepreneurial
Ideas Opportunities Venture

Essentials in Entrepreneur’s Opportunity Seeking

These are the basic foundation that the entrepreneur must have in seeking opportunities:

Entrepreneurial mind frame

 this allows the entrepreneurs to see things in a very positive and optimistic way in the midst
of difficult situation
 being a risk-taker, an entrepreneur can find solution when problem arise
Entrepreneurial heart flame
 entrepreneur’s driven passion, they are attracted to discover satisfaction in the act and
process of discovery
 passion is the great desire of an entrepreneur to achieve his/her goals
Entrepreneurial gut game
 this refers to the ability of the entrepreneur of being intuitive
 this also known as intuition
 the gut game also means confidence in one’s self and the firm believes that everything you
aspire can be reached
Sources of Opportunities
 there are many ways to discover opportunities; looking at the big picture some have noticed
the emerging trends and patterns for business opportunities, while others are trying to find
out their target market.

Some are the following sources of opportunities:

1. Changes in the environment
 entrepreneurial ideas arise when changes happen in the external environment
 a person with an entrepreneurial drive views these changes positively
 External Environment refers to the; physical environment, societal environment, and
industry environment where the business operates.

1.1.The Physical Environment Includes

a. Climate – the weather conditions
b. Natural resources – such as minerals, forests, water, and fertile land, that occur in
nature and can be used for economic again
c. Wildlife – include all mammals, birds, reptiles, fish, etc. that live in the wild
For example, one factor in the physical environment that can easily change is climate.
The temperature is very high during summer but very low during the rainy season. An
individual with entrepreneurial drive can be extremely imaginative and inventive in
 identifying opportunities. He/she can venture a business that responds to the needs of
the people during summer and rainy season.
1.2.The Societal environment includes the various forces like:
a. Political forces – includes all the laws, rules, and regulations that govern business
practices as well as the permits, approvals, and licenses necessary to operate the
business.
b. Economic forces – such as income level and employment rate
c. Sociocultural forces – customs, lifestyles, and values that characterize a society
d. Technological environment – new inventions, and technology innovations
1.3. The Industry Environment of the business includes:
a. Competitors
b. Customers
c. Creditors
d. Employees
e. Government
f. Suppliers
2. Technological discovery and advancement
 a person with entrepreneurial interest sees possibility of business opportunities in any new
discovery or because of the use of latest technology.
 for example, an individual with knowledge in repair and installation of a machine engine
discovers that additional engine parts that considerably reduce fuel consumption.
3. Government’s thrust, programs, and policies
 the priorities, projects, programs, and policies of the government are also good sources of
ideas.
 For example, the use of fire crackers to celebrate New Year is strictly prohibited. People
without entrepreneurial interest will view the ordinance as a plain restriction. However, for
an entrepreneur, it is a business opportunity to come up with new product that will serve as
a substitute for fire crackers.
4. People’s interest
 the interest, hobbies, and preferences of people are rich source of entrepreneurial ideas.
5. Past Experiences
 The enterprise and skills developed by a person who has worked in a particular field may
lead to the opening of related business enterprise.