Entrepreneurship ➢ Execution Intelligence (execute your

-you will be the employer imagination

-creating a new product on the existing product.
Myths about entrepreneurs
Difference between Entrepreneur and ➢ Entrepreneurs are born not made
Businessman ➢ Entrepreneurs are motivated primarily by
money
➢ Entrepreneurs should be young and
Businessman Entrepreneur
energetic
1. The person 1. A person who ➢ Entrepreneurs love the spotlight
starts a brings unique
business on an idea to run a
Philippine Culture, Entrepreneurship, and
old concept or startup
Development
idea company
2. Makes his place 2. Creates the
in the market market for his How Countries Grow and Become Rich
with his effort own business Economic development is brought about by an
and dedication 3. A market “invisible hand”
3. A market player leader because -(Adam Smith, 1937)
4. Oriented he’s the first to
Development is brought about by individuals who
towards profit start such kind
5. Risk factor is of enterprise set out to produce valuable goods and services for
low but faces a 4. Focused on their personal gain and profit.
huge essence it gives
competition more Economic development is brought about by
from the rivals importance to individuals who like to create and get things
due to its employees done not primarily for profit but for more nobel
similarities of and customers
motives
products and 5. Takes risks and
services they make -(Joseph Schumpeter, 1934)
competitors Said that economic growth is initiated by
however, they enterprising men and women who produce not
remain necessarily for personal profit but for nobler, less
untouched selfish reasons. These men and women promote
new goods and new methods of production, use
3 Primary essence why people become new sources of materials explore new markets
entrepreneur and start their own firm because they:
1. Passion- desire to pursue their own idea ● Find enjoyment in creating or producing
2. Because of the financial rewards ● Feel a sense of fulfillment in getting things
3. done
● Like to achieve for achievement’s sake
Characteristics of a Successful entrepreneur
➢ Passion for the business The Role of the Entrepreneur
➢ There is a product focus, purpose focus on (“an entrepreneur is someone who plans,
customer organizes and puts together all the resources
➢ Tenacity despite failure
required to bring a new enterprise into existence
and to run and manage it on a long-term basis”
Diaz n.d)
Resources an Entrepreneur puts together:
● Human resources (workers, managers,
customers and suppliers)
● Non-human resources (land, building,
money, machines, materials, and
methods)
An entrepreneur is one who:
● perceives business opportunities in the
environment
● Takes risks to make use of these business
opportunities
● Invests his own or borrows money to use
in business
● Introduces innovations or improvements
to make the business better, more
efficient, and more profitable
● Makes plans and decisions for the
business, and
● Generates profit for the business
The entrepreneur can also be thought of as the
most important factor/person in the business.
How entrepreneurs make a country rich and self-
reliant
1. They provide the goods and services
which members in the community or
group need but cannot provide
themselves. (i.e food on our tables,
clothes on our back, utensils for our
kitchen , supplies for our offices etc. items
for our daily consumption needs)
2. Entrepreneurs earn profits that help the
economy grow.
-When there is demand for goods and
someone supplies it, money changes
hands and profits are made. The more
goods are demanded and supplied, the
bigger profits and the more money
circulating in the economy. The main
person who makes these activities happen
is the ENTREPRENEUR - or the BACKBONE
OF THE ECONOMY.
3. The entrepreneur provides jobs.
- The entrepreneur helps a country
prosper not only because he produces and
supplies goods and services that are in
demand therefore makes profits, but also
because as he produces goods and
services, he employs other people.
4. Entrepreneurs who succeed and grow
help other entrepreneurs succeed and
grow too.
5. As more entrepreneurs create and
produce in the economy, the country
depends less on imports, or goods that
come from other countries
- as we import less, we save more. Our
dollars stay in the country instead of going
out when we pay for foreign imports.
This is why entrepreneurs are sometimes
called the ENGINE of the economy.
6. Entrepreneurs help develop small towns
and cities and thus stem the migration of
rural people into the big cities.
What an entrepreneur does.
1. Perceive opportunities in the
environment
- an entrepreneur sees business ideas and
opportunities in every human need, want
or problem. If some material or resource
lies in abundance, in the availability of
unemployed people with skills in or near
the place where he lives. He sees business
opportunities in an expensive, imported
product that is being sold in the local
market.
 2. Take calculated risks
- entrepreneurs moderate business risks in
various ways. Some entrepreneurs
prepare formal feasibility studies and
business plans. These studies give them
clear information about how much they
need to start and run the business.
3. Produce and use capital
- a person who starts a business enterprise
must have “something” to begin with: it
may be cash from his personal savings
plus some tools and equipments his
business could use. (called capital)
- if he borrows money from friends and
relative or from the “Bombay” or the bank
and puts them in business the term is
(borrowed capital)
4. Introduce innovations
-innovation implies newness, originality or
creativity, variation or uniqueness. The
entrepreneur introduces new ideas and
products and new ways of doing things.
5. Organize the business
-the entrepreneur monitors the activities
of all his workers so that the output of one
is ready when the others need it.
6. Makes plans and decisions
7. Make profits
THE REWARD AND RISKS OF BEING AN
ENTREPRENEUR
A. THE REWARDS
1. Make money
- when you have a business, you get a
chance to earn money. The more time,
effort and money you put into your
business, the more earnings are likely to
be. In short, you make the amount of
money you deserve.
2. Be your own boss
- if you are a salaried employee, you will do
as your employer or boss tells you to do.
As an entrepreneur, you own the business,
so nobody tells you what to do.
3. Express creativity
-a business, any kind of business for that
matter, begins as an idea of an
entrepreneur. The “seed” of an idea then
grows as the entrepreneur makes plans
and puts these into action. He then works
hard to turn the idea into a business
venture that produces products and
services and earns income for him and his
employees.
4. Gain self-satisfaction
-a business gives the entrepreneur a sense
of accomplishment- a feeling of
satisfaction from having done something
that at first he thought he could not do.
B. THE RISKS
1. The risk of failure
-other small enterprises fail because the
owner does not have the technical or
managerial expertise to run the business
successfully. To reduce the risk of failure,
it is important that the entrepreneur has
adequate training in starting and
managing a business.
2. Long hours of hard work
- entrepreneurship is often about creating
something new and it requires a lot of
time and effort.
3. Unwanted responsibilities
- not all entrepreneurs are prepared for
the responsibilities that come along with
being in business. Entrepreneurs who
have gone into business simply to earn a
living usually find themselves unprepared
to take on unexpected management
responsibilities.
CULTURAL FACTORS THAT CONTRIBUTE TO THE
EMERGENCE OF ENTREPRENEURS

Cultural values
- are ideals held by a community as standards for
social or interpersonal behavior. Values and
attitudes, in turn, influence the way people behave
or act under certain situations. This behavior is
sometimes referred to as practice.
1. Views on competition.
-this type of culture believes that
competition is good rather than harmful.
It is a culture that prefers to have a
number of firms engaged in healthy
competition rather than having one or
very few firms controlling the market.
2. Time orientation
- “quick-buck operators” ; refers to
businessmen who are out to earn a lot of
money in one or two fast business deals.
Another dimension of “time orientation"
is when the entrepreneur is conscious that
timeliness or the right timing is important
in doing business. Products must be sold
at the right time.
3. Regard for entrepreneurs, traders, and
“capitalists”
-cultures where entrepreneurship grows
are those which recognize that vendors
and traders are the future entrepreneurs,
the potential producers of goods and
services, and the prospective generators
of employment.
4. Conferment of social ranks
-a culture that promotes entrepreneurship
is one that confers social ranks in terms of
actual achievement rather than
circumstances of birth.
5. Work ethics
-a culture with good work ethics mirrors a
society where entrepreneurs prosper.
Where work ethic is high, people regard
work as a duty and value honest,
productive labor while punishing laziness.
6. Attitude towards money
-when people expect value and quality for
their money, entrepreneurs will be
encouraged to invent, innovate and look
for ways to produce efficiently. Thus
entrepreneurs will compete not on the
basis of who can sell at the lowest price
regardless of quality but who can give
buyers their money’s worth.
Philippine Cultural Values and Entrepreneurship.
Despite our many positive traits, we have not
developed enough faith and pride in ourselves as
a people who can make things happen and who
can control our own destiny. Consequently, other
nationals have misguidedly branded Filipinos.
According to some foreigners Filipinos tend to:
● Be lazy and prone to relax and take things
easy
● Avoid taking risks
● Go along with wishes of the group even if,
personally, one wants to do something
else
● Be oversensitive to criticisms so that one
stops what he is doing when it does not
meet the approval of others
● Lack perseverance and persistence
● Be fatalistic or to let fate or destiny decide
the outcome of what one does
● Crab mentality
● Lack originality and creativity, and is apt to
imitate what others are doing
Filipino Values Favorable to Entrepreneurship
1. Pakikipagkapwa (values promote the
ideals of entrepreneurship)
-pakikipagkapwa is all about how we treat
others and relate with other people. It tell
us to regard others as equals or as fellow
 human beings who are every bit as
important, dignified, and worthy of
respect as we are
-pakikipagkapwa encompasses our
concern for hiya, pakikisama, pakikibagay,
pagmamalasakit, utang na loob, amor
propio( self esteem) and bayanihan.
2. Many Filipino values promote risk-taking
or lakas ng loob
-entrepreneurship involves some amount
of risk-taking in the sense that one goes
into business without 100% guarantee of
success. Thus, individuals without guts
shun away from challenges and do not
become entrepreneurs. Other values that
makes Filipinos MALAKAS AND LOOB as
people, and not SEGURISTAS
a. Bahala na
-perhaps our lakas ng loob arises
from our tremendous capacity to
make improvisations or remedyo.
Thus, bahala na is really backed up
by the belief that whatever
happens we will know what to do
to help ourselves when the time
comes.
b. Gaya-gaya
-our ability to learn and adapt to
new ways of doing things may also
be seen in our talent for imitation
c. Pakikipagsapalaran
-Filipinos have a high sense of
adventure. This is also related to
our ability to improvise, to know
what to do when placed in a
difficult or unexpected situation.
d. Close family ties
-The Filipino family is a source of
support to any aspiring
entrepreneur. We can always count
on our family to help us get back
on our feet and start again.
e. Utang na loob, hiya, amor propio,
awa, bayanihan
-The willingness to help may come
simply from goodwill, in return for
some past utang na loob or in
expectation of a return in some
future time when they will also
need our help.
3. Katapatan as a value promotes ethical
business practices
-We emphasize katapatan and kalinisan ng
kalooban when dealing with others and
expect these of others in turn.
4. Our values promote harmonious labor-
management relations
-since the Filipino tries to be sincere and
well intentioned in dealing with people,
he will also tend to be a good manager
and employer.
5. Our values promote social mobility
-social mobility refers to the degree of
difficulty or easiness a society or group of
people allows a member to go up or climb
from one social level to another.
(i.e. RAMON MAGSAYSAY, NORA AUNOR,
TORIBIO TEODORO & LEONARDO SARAO,
these people are some of the examples
that had the chance to climb the society
height.)
Traditional Filipino traits that drive us to succeed
in enterprise
➢ Sipag(Diligence)
-an essential quality of an entrepreneur.
Entrepreneurs, therefore, tend to work
hard and for long hours, make personal
sacrifices in order to produce good quality
products, deliver on time and
consequently satisfy customers.
➢ Katipiran (thrift/frugality)
-frugality and industry go together like
bow and arrow. You would not like to
 carelessly spend money that you earned
the hard way. Many of those who spend
carefully have saved enough to eventually
set up their own business. And as
entrepreneurs, they think twice before
spending on things that do not pay back in
terms of profit.
➢ Pagkamatiisin (patient with endurance)
-Filipinos, as a rule, are matiisin (enduring)
in the face of suffering or adversity.
Pagtitimpi or self-control is another
manifestation of endurance.
Filipino values that deter entrepreneurship
➢ Traditional child-rearing practices hinder
the development of an independent
entrepreneurial spirit.
➢ Belief in the existence of all-powerful
forces to control a person’s destiny may
destroy entrepreneurial initiatives
➢ Amor propio makes the Filipino refuse to
take full responsibility for his action when
he fails
➢ The bahala na attitude, if not tempered
by intelligent judgment and planning,
may lead to imprudent decision making
➢ Our Family and relatives may be a very
supportive group, but they can also do
harm to the business enterprise.
➢ Colonial mentality impeded the
development of a self-reliant
entrepreneurship
➢ Crab mentality is particularly destructive
to entrepreneurship.
The link between Family and Entrepreneurship
1. Entrepreneurs were brought up in an
atmosphere of self reliance and freedom
2. Entrepreneurs learned an early craft at
home
3. Entrepreneurs had an early exposure to
business
4. Many entrepreneurs come from migrant
families
5. Many entrepreneurs are the first-born in
the family
Opportunity Seeking
-look opportunities upon negative
Persistence
-know how to truly excel kahit medyo
problematic yung environment
Commitment to work contract
-be committed to the business, employees and
customers
Demand for quality and efficiency
- competitive advantage(provides the best
product , goods and services)
Risk Taking
-taking risks
Goal setting
-have a good goal setting skill (have our own
objective, without it there is no direction)
Information Seeking
-don’t venture to business empty handed
-have the technical know-hows, study and
research of your niche/ target market
Systematic planning and monitoring
-means good/ scientific process in doing
something
-makes plans in every activity
Persuasion and Networking
-be persuasive
Self Confidence
-is something that we can develop
-involving yourself in activities that can help you
develop yourself.
Philippine Environment for Entrepreneurship
-unequal distribution of wealth
MSME(MicroSmallMedium Enterprise)
- Level of all business/ enterprise
- If your capital is lower than 3 million then
you’re a MICRO enterprise (1-9 employee)
- 3 million-15 million (not higher than 15
million) SMALL Enterprise (10-99
employees)
- 15 million- 100 million capital MEDIUM
enterprise (100-199 employees)
- Higher than 100 million capital is considered
a LARGE enterprise