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Ex:
TOPIC 1
Origin from the word Entrepreneur
-Comes from the French word ‘Entreprendre’
which means ‘To undertake, to set about’ or
‘To undertake or to try’.
Entrepreneurship
– is a process of creating, launching and
managing business operation.
Entrepreneur
-one who undertakes innovations, finance, and
business acumen to transform innovations into
economic goods.
Different People’s meaning of Entrep:
Adam Smith (1776) – acts as an agent in
transforming demand into supply.
Jean Baptiste Say (1803) - An entrepreneur is a
person who shifts resources from an area of
low productivity to high productivity.
John Stuart Mill (1848) - is the fourth factor of
production after land, labor, and capital.
Carl Menger (1871) - acts as an economic agent
who transforms resources into products and
services.
Alfred Marshall (1936) - The process of
entrepreneurship or business development is
incremental or evolutionary.
=THEORIES OF ENTREPRENEURSHIP=
Economic Theory
-Entrepreneurship and economic growth take
place when economic conditions are favorable.
-Economic incentives are the main motivators.
-Theory was established by Richard Cantillion,
an Irish French Economist.
-He views entrepreneurs as a risk taker.
Sociological Theory
-Uses society and culture to grow a business.
-Entrepreneurship is likely to get a boost in a
particular social culture.
 Filipinos are into eating lechon, so, a lot
of people are into that business.
 Filipino love eating, so that’s why many
businesses cater to the food industry.
-Views Entrepreneurs as an organizer.
Entrepreneur as an Innovator
-propounded by Joseph Schumpeter.
-Entrepreneur converts a new idea into a
successful innovation.
-this theory ignores the earlier 2 abilities, which
were till then, considered key for an
entrepreneur.
- organizing abilities (sociological theory)
- risk-taking abilities (economic theory)
Ex: The innovation of the combination of a
steam engine with a wagon-cart.
-Views Entrepreneur as an innovator.
Entrepreneurship and Innovation
An entrepreneur innovates when he:
- Introduces a new production.
e.g., Virgin Galactic
- Introduces a new production method.
e.g., Speedy System (McDonald’s)
- Opens a new market.
e.g., The Blue Ocean Strategy
- Finds out a new source of raw material
supply.
e.g., Moving from coal to petroleum to
nuclear energy sources.
- Introduces a new organization in any
industry.
Psychological Theory
-Entrepreneurs are formed during the
individual’s upbringing.
-The psychological characteristics
include:
 Need for Achievement,
 A Vision or Foresight,
 Ability to face opposition, etc.
-These characteristics are formed.
 during the individual’s upbringing
  by high standards of excellence It also refers to the process by which the overall
self-reliance and health, well-being, and academic level the
 Low father dominance. general population improves. Economic
development is all about improving living
Theory of Achievement Motivation standards.
-By David McClelland
-basis of entrepreneurial personality, he Roles of Entrepreneurship in Economic
emphasized the importance of achievement Development
motivation through which an entrepreneur
fulfills economic and social development. The entrepreneur is the key to economic
-Entrepreneurship can be developed and the growth.
traditional beliefs do not inhibit entrepreneurs. 1. Promotes capital formation –
THE KAKINADA EXPERIMENT entrepreneurs promote capital
- Conducted by McClleland in America, formation by mobilizing the idle
Mexico, and India savings of the public; they employ
their own as well as borrowed
- Young adults were selected and put resources for setting up their
through a 3-month training to induce enterprises.
achievement motivation – Such types of entrepreneurial
activities lead to value addition and
- Findings:
creation of wealth, which is very
a) Achievement motivation had a essential for the industrial and
positive impact on the economic development of the
performance of the participants. country.
b) Traditional beliefs do no inhibit 2. Creates large-scale employment
an entrepreneur. opportunities – with the setting up
of more and more businesses (both
- McClleland identified two (2)
on small or large-scale), as times
characteristics of entrepreneurship:
passes, providing numerous job
a) Doing things in a new and better opportunities.
way – Entrepreneurs play an effective role
b) Decision making under in reducing the problem of
uncertainty. unemployment in the country which
in turn clears the path towards the
-People with High Achievement
economic development of the
Orientation (need to succeed) are more
nation.
likely to become entrepreneurs.
3. Promotes balanced regional
development – entrepreneurs help
TOPIC 2: ENTREPRENEURSHIP AND ECONOMIC
to remove regional disparities
DEVELOPMENT
through setting up of industries in
Economic development is a scheme at
less developed areas.
improving the living standards of the nation’s
– The growth of industries in those
citizenry; the process by which emerging
areas lead to a number of public
economies become advanced economies.
benefits like road transport, health,
education, entertainment.
– Setting up more industries lead to
more development in backward
areas and thereby promotes
balanced regional development.
4. Reduces concentration of
economic power – economic power
is the natural outcome of industrial
and business activity; it usually
results in monopolies.
– To reduce the concentration
economic power, large numbers of
entrepreneurs need to be developed.
5. Wealth creation and distribution –
it stimulates equitable redistribution
of wealth and income in the interest
of the country to more people and
geographic areas, thus giving larger
sections of the society.
– Entrepreneurial activities also
generate more activities and give a
multiplier effect in the economy.
6. Increasing Gross National Product
Per Capita Income – as
entrepreneurs are always on the
lookout for opportunities and bring
in new products and services as well
as develop markets for the growth of
the economy, they help increase
gross national products and per
capita income of people in the
country.
7. Improvement in the standard of
living – entrepreneurs play a key
role in increasing the standard of
living of the people by adopting the
latest innovations in the production
of a wide variety of goods and
services in a large scale that too at a
lower cost; this enables people to
avail quality goods at a lower price
which results in the improvement of
their standard of living.
8. Promotes the country’s export
trade – entrepreneurs create goods
and services on a large scale for the
purpose of earning huge amounts of
foreign exchange from export in
order to combat the import dues
requirement.
9. Induces backward and forward
linkages – when an enterprise is
established in accordance with the
changing technology, it induces
backward and forward linkages that
stimulate the process of economic
development in the country.
10. Facilitates overall development –
entrepreneurs act as catalytic
agents* for change which results in a
chain reaction.
Types of Entrepreneurships
1. Administrative Entrepreneurship –
all administrative techniques and
functions of entrepreneurial activity
included.
– The joint efforts of both the general
management and scientific-technical
personnel to identify areas for
research and development of new
products/techniques, or the
improvement of the existing ones.
2. Opportunistic Entrepreneurship –
‘hit the iron when it is hot.’
– Identifying, exploiting and performs
the upcoming opportunities in the
first hand.
3. Acquisitive Entrepreneurship –
learns from other competencies.
– It acquires something new of value,
the competitive environment, etc.
– Some failures never prevent
entrepreneurs from learning and
developing new skills but also
encourages them to figure out such
new things all the time.
4. Incubative Entrepreneurship –
generates and nurses new ideas and
ventures within the organization;
business incubators are
establishments that specialize in
helping startups get going.
5. Imitative Entrepreneurship – under
an agreement with a franchise, this
entrepreneurship imitates or copies
the operative products and services.
– Adoption of current technologies
from around the world and the
modifications of existing
technologies.
6. Private Entrepreneurship – initiated
under the private sector.
7. Public Entrepreneurship – came
under the government through the
various development agencies.
– They work under the gov’t to solve
public and environmental issues;
bound to gov’t rules and regulations.
8. Individual Entrepreneurship –
managed and executed by an
individual or a member of a family
with some persona motives as well
as initiatives.
9. Mass Entrepreneurship – a) Leverage non-profit – uses
emergence of this entrepreneurship
is due to the presence of a lot of
favorable climates of
encouragement as well as a
motivation among the common
masses.
10. Small Business Entrepreneurship –
a small entrepreneur can be the
person who operates the business by
hiring local people of family
members.
– Profit in this type of business is
pretty less as the main reason
behind them is creating a living for
their families.
11. Large Company Entrepreneurship
– they grow using innovation.
– They create new variants apart
from the core products they
manufacture.
– The reasons for disruptive
innovations* are customization in
the demand of the customer,
establishment of new technologies,
and the emergence of new
competitors.
12. Scalable Startup Entrepreneurship
– the company is started with a
vision that changes the universe.
– Funding in such businesses arises
from the venture capitalists, and that
is why they hire top employees.
13. Social Entrepreneurship – people
in business are the innovators who
target on development of products
and services so that social
requirements and problems can be
solved.
Types:
funds in innovative ways to be
able to fulfill a need.
b) Hybrid non-profit – uses profit
to be able to support its causes.
c) Social business venture – uses
set-up businesses in line with
the enterprise to support its
operations.
14. Intrapreneurship – term was coined production and distribution of
by Gifford Pinchot in 1973 farm supplies.
– Fostering the activities of
entrepreneurs in a large organization 20. Transpreneurship – when people
by making improvements in the from various groups of gender
products and branding them to such as transgender and Hijra come
increase the profitability. up with some small-scale businesses
to fulfil their day to day needs.
15. Technopreneurship – blend of the
words, technology, and 21. Commercial Entrepreneurship –
entrepreneurship. associated with the profitability
– IT (Information Technology) plays only and emphasized the
an important role. opportunities and not on the
– Technology is used as an essential resources.
part. - It is viewed as profit-based
entrepreneurship as all the
16. Cultural Entrepreneurship – operations held by taking profit as a
produce products that are culturally major motive.
good and generating a lot of
opportunities for economy, society, 22. E- Entrepreneurship – also known
and culture. as cyberpreneurship; online
venture businesses.
17. International Entrepreneurship –
the whole process of 23. Domestic Entrepreneurship – when
entrepreneurship conducts ad, a business owner produces goods
performs the activities of the and services within the boundaries
business across the boundaries of of a nation.
the nation. – They follow all the rules and
– Opening new branches of a regulations related to the
business firm in new locations, business established by the
exporting the products to other gov’t.
countries, and get a license to
sell as well as promote products 24. Trading Entrepreneurship – a kind
across nations. of mediator between a
18. Ecopreneurship – “green manufacturer of a product and its
entrepreneurship”; concerned with customers/retailers/wholesalers.
the problems of environment while
focusing on the operations of the 25. State Entrepreneurship – a
business firm and its profit margin. business firm managed and wholly
19. Agripreneurship – developments in operated by the state or the gov’t
the field of agriculture. of the state.
– a simple business and includes
all the operations of a business 26. Joint Entrepreneurship –
firm such as manufacturing, collaboration of private and public
entrepreneurship.

TOPIC 3: THE ENTREPRENEUR’S PERSONALITY
Personality refers to the pattern of
characteristics that distinguishes one person
from another (values, traits, motives, attitudes)
An interesting study made by Holland proposed
six personality types:
1. Realistic – individual prefers activities
involving aggressive behavior and
physical exertion (e.g., farming)
2. Investigative – individual prefers to be
analytical, curious, methodical, and
precise (e.g., crime investigator)
3. Artistic – person is expressive,
nonconforming, original, and
introspective (e.g., Bang Yedam – singer
& songwriter)
4. Social – person enjoys working with
and helping others and purposefully
avoids systematic activities involving
tools and machines (e.g., social worker)
5. Enterprising – person enjoys verbal
activities to influence others and to
attain power and status (e.g.,
entrepreneur)
6. Conventional – person enjoys the
systematic manipulation pf data, filing
of records, or reproducing materials
(e.g., accounting)
Characteristics of an Entrepreneur
1. Drive – success in entrepreneurship is
possible if the entrepreneur is self-
motivated enough to pursue his chosen
course without relenting even in the
face of adversity.
2. Thinking Ability – an entrepreneur
needs to use his thinking ability to
solve problems and make decisions; a
person with superior thinking ability can
see through the maze of information
(and disinformation) brought before
him.
3. Human Relations Ability – three types
of people will determine the survival
and growth of business firms:
a) the customer
b) the employee
c) the third party.
– All of them can be useful partners
of the firm, but this will depend to a
large extent on the ability of the
entrepreneur to relate with them.
4. Ability to communicate – ability to
understand and be understood makes
it easier for the entrepreneur to
transact business.
5. Technical knowledge – operating an
entrepreneurship requires the
performance of major and minor tasks;
if the entrepreneur has technical
knowledge, it will be easier for him to
devise a strategy on how he will
manage his firm to effectively compete
with others.
6. Reasonable risk-taker – entrepreneurs
are expected to be reasonable risk-
takers, not conservative but also not
gamblers; they assume the risks only
after they are convinced that they have
the kills and resources to overcome the
difficulties.
7. Self-confident – when a person has self-
confidence, he does his job without
inhibition, a person’s belief in his
ability.
8. Goal setter – goals are very useful
motivational tools, esp. those related
 to accomplishing the objectives of
entrepreneurs.
9. Accountable – compliance can be
expected if the entrepreneur is
accountable enough to take
responsibility for whatever happens in
the firm.
10. Innovative – a free enterprise economy
like ours allows business enterprises to
flourish.
11. Intrinsically motivated – constantly
motivated to perform; optimistic,
enthusiastic, always thinking about the
future.
12. High creativity and the ability to
persuade – creative mind so as to see
an opportunity where other people see
a problem; have the ability to convince
themselves and others that the
opportunity is worth pursuing and their
solution will work.
13. Persuasive and possess good people
skills – able to convince investors that
you have a great idea; communicate
clearly and persuasively.
14. Excellent business acumen – able to
envision and create the internal
processes.
15. Enjoys the work – entrepreneurs get
personal satisfaction from going to
work in their own companies.
16. Tenacious – entrepreneurs are ready to
overcome challenges and
uncertainties.
17. Obsessive planning – plan constantly;
establish methods, policies and
procedures running their business.
18. Passionate – entrepreneurs are far
more motivated by the passion to
achieve a specific purpose.
19. Focus on the customer – the business is
all about providing the customer with a
better solution at a cheaper price.
20. Visionary and willing to think outside
the box – confronts problems in
atypical ways, thinking creatively and
freely and challenges the status quo.
21. Proactive – taking a leap and jumping
into action rather than waiting for the
circumstances to change favorably.
22. Highly adaptable and open to
experience – always ready to welcome
new trends, newer methods.
23. Good with managing money – need to
be involved in activities such as reading
bank statements, tax forms,
bookkeeping etc.; must be good with
numbers.
24. Eager to collaborate – smart
entrepreneur is the one who is
consistently making new connections.
25. Humble enough to ask for and accept
help – receiving help is part of the
human social experience and it does not
make you weak or vulnerable.
26. Competitive and has thick skin.
27. Disciplined and knows how to manage
time – plan and prioritize all tasks,
make a to-do-list, delegate their
responsibilities.
What Motivates People to Become
Entrepreneurs
 a) Desire to be one’s own boss.
b) Desire for financial rewards
c) Desire to create one’s own job security.
d) Desire to improve one’s quality of life.
e) Their creativity doesn’t fit the corporate
environment.
f) They’re passionate about learning.
g) They want to change the world.
h) Family
i) Community and social motivation
Distinction Bet. Entrepreneur and Manager
Entrepreneur Manager
Creates new enterprise Takes the responsibility of
controlling /administering
an org.
Focus is business start-up Focus is ongoing
operations
Primary motivation is Primary motivation
achievement power
Status is the owner Status is an employee
Reward is profit Reward is salary
TOPIC 4: BUSINESS ETHICS AND SOCIAL
RESPONSIBILITIES
Ethics is concept of beliefs about what is right
or wrong based on individual morals/values and
social context; different cultures, businesses,
and industries have different ethical standards.
Most business are guided by business ethics. 
rules based on moral principles about how
businesses and employees ought to conduct
themselves.
Areas of Business Ethics
o Creating safe products
o Creating jobs
o Fair treatment of employees
o Environmental protection
o Truthful about financial status
The Laws of Ethics
Unethical business practices include:
o Lying
o Offering merchandise known to be
substandard
o Treating customers or employees
unfairly
A sweatshop is an example of unethical
practice outlawed in other countries. A
sweatshop is shop/factory in which workers are
employed for long hours with low wages and
under unhealthy conditions.
Conflict of interest is a major ethical question
that is generally not illegal.  a conflict bet.
is self-interest and professional obligation.
The Department of Labor and Employment
(DOLE) is a gov’t agency that champion the
cause of work safety and health in the
Philippines. It sets and enforces work –related
health and safety rules.
Importance of Good Ethics
 Unethical business practices can result
in bad word of mouth and result in lost
sales.
 Unethical behavior toward employees
can lead to legal action or a high rate of
employees quitting.
 If a business violates gov’t regulations,
the owner can be fined or go to jail.
 If an employee violates company or
professional code, the employee might
be fired or lose his/her license.
In business, people follow rules as well as code
of ethics.  a set of guidelines for maintaining
ethics in the workplace.
Ethical Questions
o Is it against the law? Does it violate
company or professional policies?
o Even if everyone is doing it, how
would I feel if someone did this to
me?
o Am I sacrificing long-term benefits for
short-term gains?

The Ethical Decision-making Process
1. Identify the ethical dilemma.
2. Discover alternative actions.
3. Decide who might be affected.
4. List the probably effects of
alternatives.
5. Select the best alternative.
Business and Social Responsibility
The social responsibility* of business takes into
consideration all that business does or does not
do to solve the problems of society.
Corporate social responsibility (CSR) means
that companies take responsibility for the
impact of their business activity to society. It is a
question of finding the right balance between
the three P’s: People, Planet, Profit.
Areas of Social Responsibility
 Responsibility to Customers – business
should offer a good, safe
product/service at a reasonable price.
– Food and Drug Administration
(FDA) protects consumers from
dangerous or falsely accused
products.
 Responsibility to Employees
businesses can show responsibility to
employees through:
a) providing work experience for people
with limited job skill.
b) volunteerism.
c) providing safe work conditions.
d) equal treatment.
e) fair pay.
f) meet legal standards.
g) fairness in recruiting, promotion, and
compensation.
h) workplace safety minimum wage /
overtime requirements.
i) protection from sexual harassment.
j) provide work/life balance.
k) family & medical leave.
– Equal Pay Act-Labor Code  legal
provision of equal pay; states that
it is unlawful for any employer to
discriminate against women
employees
the – R.A. 7277  right of disabled
persons to be given opportunities
for suitable employment
– Anti-Age Discrimination in
Employment Act of 2016 
employer might be punished with a
fine ranging from 50k to 500k, or
imprisoned from 3 months to 2
years.
 Responsibility to Environment
- R.A. 6969 (Toxic Substances and
Hazardous and Nuclear Waste
Control Act of 1990)  aims to
regulate restrict or prohibit the
importation, manufacture,
processing, sale, distribution, use
and disposal of chemical
substances and mixtures the
present unreasonable risk to human
health.
- R.A. 8749 (Clean Air Act of 1999) 
aims to achieve and maintain clean
– air that meets the National Air
Quality guideline values for criteria
pollutants, throughout the
Philippines.
- R.A. 9003 (Ecological Solid Waste
Management Act of 2000)  aims
to adopt a systematic,
comprehensive, and ecological
solid waste management program
that shall ensure the protection of
public health and environment.
- R.A. 9275 (Philippine Clean Water
Act of 2004)  aims to protect the
country's water bodies from
 pollution from land-based sources
(industries and commercial
establishments, agriculture, and
community/household activities).
 Responsibility towards shareholders,
suppliers, creditors, etc.

SUPPLIERS CREDITORS

o To pay fair prices of goods o To obtain loans on reasonable

o To pay in reasonable time
o To inform about changes in market
o To give guarantee of minimum price
o To motivate indigenous supplies
o To provide technical advice
o To inform suppliers of future
developments
o To promote healthy competition
conditions
o To follow mortgage rules
o To follow business ethics
o Proper utilization of debt capital
o Regular payment of installment and
interest
o Repayment of loan