The Key Concepts of

Common
Competencies
Lesson 2
Learning objectives:
Identifythe factors affecting
entrepreneurship
Discuss the functions of an
entrepreneur
Enumerate the 5 types of
entrepreneurs
Factors Affecting Entrepreneurship

1. Personality Factors
2. Environmental Factors
1. Personality Factors
Personal factors, are an entrepreneur core
competencies which include:
a) Initiative
b) Proactive
c) Persistent
d) Problem-solver
e) Persuasion
f) Self-confidence
g) Self-critical
h) Planner
i) Risk-taker
Initiative – does things before
being asked, the action of taking
the first step or move.

Proactive – identifies and utilizes

opportunities, entrepreneurs are
in habit of identifying present and
future needs of people and
institutions in the community
Persistent – perseverance works
against all odds to overcome obstacles
and is never complacent with success,
they keep on trying various
alternatives to improve their services
to the people.

Problem-solver – they anticipate and

solve problems creatively. This calls for
being a wise decision-makers.
Persuasion –convinces
customers and financiers to
patronize his business

Self-confidence – makes
decisions and sticks to his
decisions
Self-critical – learns from his mistakes
and from experiences of others

Planner – collects information,

prepares a plan, and monitors
performance

Risk-taker – is willing to take

calculated risks, they take the chance
of investing.
 2. Environmental Factors
These factors relate to the conditions
in which an entrepreneur has to
work.

❖Politicalclimate
❖Legal system
❖Economic and social condition
❖Market situations
 Political Climate
 Political
stability in a country is absolutely
essential for smooth economic activity.
Legal System
 Unfair trade practices
 Elements and bodies that are directly
involved in the legislation and
interpretation of laws and ordinances
directly affecting the business.
Economic and social condition
 Economic forces are factors which are
primarily caused by changes or
movements in the Philippine economy
that have direct or indirect effects on
the entrepreneurial venture.
Economic and social condition
 Socialforces are elements in society
resulting from human interactions that
can influence the thoughts, behavior,
attitude, actions, and even the belief
and customs of the people.
Market Situations
 Target market / competition
FUNCTIONS OF
AN
ENTREPRENEUR
 Innovation

Assumption of
Risk

Functions of an Research
Entrepreneur
Development of
Management Skills

Overcoming
resistance to
change

Catalyst of Economic
development
1. Innovation
“An entrepreneur is basically an innovator who
tries to develop new technology, products and
markets.**

FACT
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FACT or BLUFF
➢Innovation may involve doing
new things or doing existing
things differently.

➢An entrepreneur uses his

creative faculties to do new
things and exploits
opportunities in the market.
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.”

FACT
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FACT or BLUFF
 3. Research
“Research data refers to the kind of necessary
information to be gathered in answering the
objective of the research work.”***

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 ➢ Research data simply refers to the
information needed by the entrepreneur
in order to answer the objective relative
to the buying behavior of the consumers.

•Analyzing their strengths and weaknesses by

applying analytical techniques.
• testing their applicability
•Supplementing them with empirical findings
•And choosing the best alternatives.
4. Development of management skills
“the work of an entrepreneur involves the use of
managerial skills which he develops while
planning, organizing, staffing, directing, controlling
and coordinating the activities of business.” ***

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➢Establishingequilibrium between
his/her organization and its
environment.
➢When the size of business grows
considerably, an entrepreneur
can employ professional
managers for the effective
management of business
operations.
5. Overcoming resistance to change

“An entrepreneur do not tries new ideas at his

level”? ***

BLUFF
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FACT or BLUFF
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.”

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Types of Entrepreneurs
1. Innovative entrepreneurs
2. Imitating entrepreneurs
3. Fabian entrepreneurs
4. Drone entrepreneurs
5. Social entrepreneurs
1. Innovative entrepreneurs
 These entrepreneurs have the ability to
think newer, better and more economical
ideas of business organization and
management. They are the business
leaders and contributors to the economic
development of a country.
2. Imitating entrepreneurs
 These entrepreneurs are people who
follows 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 type 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 its
success rate.
4. Drone entrepreneurs
 Drone is “ a person who lives on the
labor of others”.
 Drone entrepreneurs are those
individuals who are satisfied with
existing mode and speed of business
activity and show no inclination in
gaining market leadership.
 They are die-hard conservatives even
ready to suffer the loss of business.
5. Social Entrepreneurs
5. Social Entrepreneurs
 Drive social innovation and
transformation in various fields including
education, health, human rights, workers
right, environment and enterprise
development.
 They undertake poverty alleviation
objectives and dare to overcome
traditional business practices and
innovate with the zeal of an
entrepreneur.
Assignment:
 Research on the life of at least one of the
successful entrepreneurs.(local or foreign)
 Find out what made them succeed.
 Cite lessons learned from their stories of
success.(summarize narrative story in your
own words)
 Also identify if what type of entrepreneur
does he/she belong?
 to be submitted next week meeting.
 Prepare the output in a short size bond
paper.( 1 to 2 pages only )

Grading rubrics:
Content 10pts
Presentation 10pts
Timeliness 5 pts
Total: 25pts
Words to
ponder