Business

Enterprise
Simulation
Mr. John Rey P. Velasco, LPT.
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for the whole semester. Be ready every time we
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recitation.
 A person who organizes
TERMINOLOGIES and operates a business

01 ENTREPRENEUR
or businesses.

Amount gained by

02 PROFIT selling a product.

Anything that threatens an

03 RISK organization's ability to generate

profits at its target levels.
GROUP ACTIVITY #1
MATERIALS NEEDED FOR TODAY'S GROUP ACTIVITY

01 MANILA PAPER

02 FELT-TIP PEN

03 SCOTCH TAPE
TABLE 1:

What is an
Entrepreneur?
TABLE 2:

Characteristics
of an
Entrepreneur?
 LESSON 1:

ENTREPRENEURSHIP
 OBJECTIVES
01 Explain what entrepreneur is;

02 Identify the characteristics of entrepreneur;

03 Enumerate the functions of entrepreneur; and

04 Enumerate the types of entrepreneur.

 WHAT IS AN ENTREPRENEUR?
An entrepreneur is someone who starts or owns a
business. Whether it's in farming, retail, manufacturing
or in the service sector, entrepreneurs are
businesspeople who find their success by taking risks.
 WHAT IS AN ENTREPRENEUR?
A person who starts a business and is willing to risk
loss in order to make money. It's about passion. It's
about recognizing opportunities and generating
innovative, creative ideas.
 WHAT IS AN ENTREPRENEUR?
An entrepreneur is an individual who creates a new
business, bearing most of the risks and enjoying most
of the rewards. The entrepreneur is commonly seen as
an innovator, a source of new ideas, goods, services,
and business or procedures.
CHARACTERISTICS OF
AN ENTREPRENEUR
FUNCTIONS OF AN
ENTREPRENEUR
 INNOVATION
An entrepreneur is basically an innovator who tries
to develop new technology, product 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 status quo and is always
in search of change.
 ASSUMPTION OF RISK
An entrepreneur 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 initiatives in doing new things
and marching ahead in his/her efforts.
 ASSUMPTION OF RISK
a. Financial Risk
Most of entrepreneurs begin by
using their own savings and if they
fail, they have the fear of losing it.
They take risk of failure.
 ASSUMPTION OF RISK
b. Job Risk
Consider the current risks of giving
up the job & starting a venture.
Several entrepreneurs have the
history of having a good job, but
gave it up.
 ASSUMPTION OF RISK
c. Social and Family Risk
He/she may confront some social and
family damages like family and
marital problems resulting on account
of absence from home and not being
able to give adequate time to family.
 ASSUMPTION OF RISK
d. Mental Health Risk
Mental tensions, stress, anxiety and the
other mental factors have many
destructive influences because of the
beginning and continuing of
entrepreneurial activity. This can even lead
to depression, when faced with failure.
 ASSUMPTION OF RISK

An entrepreneur has to assume risk. If an

entrepreneur does not have the
willingness to assume risk,
entrepreneurship would never succeed.
 RESEARCH
An entrepreneur is a practical dreamer and does a
lot of ground-work 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
finds, and then choosing the best alternative.
It is then that he/she applies his/her ideas in
practice.
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 business.
His/her managerial skills get further strengthened
when he/she engages himself/herself in
establishing equilibrium between his/her
organization and its environment.
 OVERCOMING RESISTANCE
TO CHANGE
New innovators are generally opposed by people
because they make them change their existing
behaviour patterns.
It is simply human nature to counteract any
changes and maintain the status quo. Change is
inevitable.
His/her will power, enthusiasm and energy help
him/her in overcoming the society’s resistance to
change.
 CATALYST OF ECONOMIC
DEVELOPMENT
Entrepreneurs boost economic growth by
introducing innovative technologies, products, and
services. Entrepreneurs provide new job
opportunities in the short and long term.
By creating new products and services, they
stimulate new employment, which ultimately
results in the acceleration of economic
development.
 TYPES OF
ENTREPRENEUR
 INNOVATIVE ENTREPRENEUR
These entrepreneurs have the ability to think newer,
better and more economical ideas of business
organization and management. They are the business
leaders and contributions to the economic
development of a country.
 IMITATING ENTREPRENEUR
These Entrepreneurs are people who follow the path
shown by innovative entrepreneurs. They imitate
Entrepreneurs because the environment in which they
operate is such that it does not permit them to have
creative and innovative on their own.
 IMITATING ENTREPRENEUR
In other words, they do not have an interest in
innovative activities. Rather, they copy the successful
innovations of innovative entrepreneurs, like
products, raw material, and technique, etc.
Hence, they also called copying entrepreneurs.
 FABIAN ENTREPRENEUR
These types of Entrepreneurs are skeptical about the
changes to made in the organization. They do not initiate
any inventions but follow only after they are satisfied
with its success rate. They wait for some time before the
innovation becomes well tested by others and do not result
in a huge loss to its failure.
 FABIAN ENTREPRENEUR
The Fabian entrepreneur is also known as ‘waiting for the
opportunity’, entrepreneur because such an entrepreneur
is also imitative, but he waits for favorable opportunities to
implement them and he does not implement the
innovations, till he is sure that there is no disadvantage in
applying innovations.
 DRONE ENTREPRENEUR
Drone entrepreneurs are those individuals who are
satisfied with the existing mode and speed of business
activity and show no inclination in gaining market
leadership. In other words, drone entrepreneurs are ‘die-
hard conservatives’ and even ready to suffer the loss of
business.
DRONE ENTREPRENEUR
Tobacco making
industry which is still
making tobaccos
entirely by hand.
 DRONE ENTREPRENEUR
A drone entrepreneur is who does not want to accept
any type of innovation or change. They always follow
similar old fashioned business ideologies and practices.
 SOCIAL ENTREPRENEUR
Social entrepreneurs drive social innovation and
transformation in various fields including education,
health, human rights, workers’ rights, environment and
enterprise development. Explores business
opportunities that have a positive impact on their
community, in society or the world.
 CAREER
OPPORTUNITIES FOR
ENTREPRENEUR
GRADUATES
MID-LEVEL MANAGEMENT
Branch managers.
Store managers.
Regional directors.
Department managers.
 BUSINESS CONSULTANT
A professional who advises,
provides information, provides
insight and provides
recommendations to help clients
reach their goals and solve
problems.
 SALES
Sales representative
Sales associate
Sales consultant
RESEARCH AND DEVELOPMENT
Design Engineer
Teaching Assistant
Product Engineer
Development Engineer
Manufacturing Specialist
NOT-FOR-PROFIT FUNDRAISER
The process of gathering
money to support a nonprofit
or charitable organization.
 RECRUITER
A professional that works to
match qualified individuals
with specific open positions at
an organization.
 BUSINESS REPORTER
Business reporters gather and
analyze facts with regards to
events that are newsworthy.
Characteristics of an
Entrepreneur
Functions of an
Entrepreneur
Types of an
Entrepreneur
Career opportunities for
Entrepreneur Graduates
Activity #1
"What Type of
Entrepreneur are You?"
 Activity #1
Why do you choose to be that Type of Entrepreneur?
Why do you think it fits you well?
What do you think will be the advantage of choosing
that Type of Entrepreneur?