Lesson 1

Key Components and Relevance of Entrepreneurship

Entrepreneurship
 is a proactive process of developing a business venture to make a
profit.
 It is a science of converting ideas into business.
 It refers to the concept of developing and managing a business
venture in order to gain profit by taking several risks in the
corporate world.

ENTREPRENEURIAL IDEA
 Is a specific innovative way to satisfy want, overcome a problem,
or meet a challenge

ENTREPRENEURIAL OPPORTUNITY
 Is defined as a want, a problem, or a challenge that can be
addressed, solved, and/or satisfied by an innovative initiative

ENTREPRENEUR
derived from the French verb entreprendre which means “ to
undertake”. They are innovators, willing to take risks and generate new
ideas to create unique and potentially profitable solutions to modern-day
problems. They are those who “undertake” the risk of new enterprise.

ENTERPRISE
It is an organization that is engage in commercial activities- the trade of
goods or services, or both, with consumers.
Its goal basically, is to earn profit.

TYPES OF ENTERPRISE ACCORDING TO CONCEPT

1. An enterprise can involve a new concept.
 This usually means creating or stumbling on a new idea or
concept. The inventor then builds a new business around this
product.
2. An enterprise can be built on an existing concept, but giving
rise to a new business.
 This usually means creating a new business based on the existing
concept.
 3. An enterprise can involve an existing concept and an existing
business.
Societal and Economic Benefits of Entrepreneurship
1. Entrepreneurship produces more jobs that equate to an increase
in national income.
2. Entrepreneurship amplifies the economic activities of different
sectors of society.
3. Entrepreneurship introduces new and innovative products and
services.
4. Entrepreneurship improves people’s living standards.
5. Entrepreneurship disperses the economic power and creates
equality.
6. Entrepreneurship controls the local wealth and balances
regional development.
7. Entrepreneurship reduces social conflicts and political unrest.
8. Entrepreneurship elicits economic independence and capital
formation.

Reflect Upon
1.What do you think are the factors that drive Filipinos to become
entrepreneur?

2. Name three entrepreneurial trends that you observe in your

environment. Why do you think these entrepreneurs venture into these
businesses?

3. What is the relevance of entrepreneurship in general, including its

economic importance?

4. Do you imagine yourself becoming an entrepreneur and managing your

own business in the future?