arch inst 2

week 2-4
Entrepreneurship?
as the process of creating something
new with value by devoting the
necessary time and effort, assuming
the accompanying financial, psychic and
social risk, and receiving the resulting
rewards of monetary and personal
satisfaction and independence
What Is Entrepreneurship?
Management
 refers to the coordination and
administration of business
activities, tasks, and resources to
achieve a set objective.
Entrepreneurial +
Management
is the practice of giving the
innovation inherent in
entrepreneurship a more solid
management structure.
What is an
Entrepreneur?
person who starts and or operates a
business. An entrepreneur is creative and
innovative.

He is a person who starts something new.

An entrepreneur may be male or female,
young or old, professional, college graduate
or school dropout, comes from A, B, C, D
or E economic group.
He is an owner-manager and willing to take
risks. Usually he is someone not willing to
work for others.

Instead, he wants others to work for him.

Usually, also his kind of business is single
proprietorship because he does every thing
from production to selling.
4 basic aspects of being
an entrepreneur:
1. Creation of
something of Value
2. Devotion of necessary
time and effort

Entrepreneurs devote their time

and effort towards the
attainment of their personal
goals.
3. Assumption of Necessary
risks

In the pursuit of their goals,

entrepreneurs assume risks on
the possibility of losing
whatever they put in.
4. Getting rewards.

Many entrepreneurs reap the

rewards of their efforts though
the generation of profits and
business expansion.
Role of Entrepreneurs
in the economy.
Entrepreneurs are vital in the economic development of
the country.
They provide employment
and income that moves the
economy forward.
Vicious Cycle of
Development
Thus, the cycle results to economic
development as more people employed and
enjoy an income through the investment of an
entrepreneur.

The government likewise benefits in the

process because entrepreneurs, as
businessmen, pay taxes, hence, the
government has the funds to provide
services to the people
Entrepreneur are
1. Mobilizers of Capital
2. Service Providers
3. Employers
4. Tax Payers
5. Suppliers of products
Small and
Medium Scale
Entrepreneurship
industries

Why it is important in
the country?
Entrepreneurial Competencies
Entrepreneurial
Characteristics
1. They have a strong
desire to succeed
2. They are risk takers
3. They are creative
4. They take responsibility
for their activities
5. They have high level of
confidence
Rewards of Entrepreneurship
are:

1. Money or material return or profit

2. Freedom
3. Psychological rewards.
Profit
Generally comes in the form of
money or cash – the material
income or rewards from running a
business.
Freedom
To do what he feels is fit in his
business. Being one’s own boss –
you are the boss!
Good feeling of being of
service to others.
Able to satisfy customers’ needs, is
able to give work to others.
Problems of Entrepreneurship
Strengths &
Weaknesses
???enyumereyt???
1. Entrepreneurship demands hard
work
2. Entrepreneurship demands long
working hours
3. Entrepreneurship may cause
emotional stress.
PECS
Personal Entrepreneurial Characteristics

In the Philippines, extensive research by the small

Enterprise Research and Development Foundaton at
the Department of Trade and industry reveals 10
Personal Entrepreneurial Characteristics (PECs) that
leads to success.

These are grouped into what we called:

1. Achievement Cluster
2. Planning Cluster and;
3. Power Cluster
Achievement Cluster
Pertains to the desire of the individual to fulfill or to
realize something .

1. Opportunity-Seeker
2. Persistent
3. Committed
4. Risk-Taker
5. Values Efficiency and Quality Oriented
Planning Cluster
An entrepreneur is clear on what he wants to achieve. He
plans his every move because he knows that eliminated
resources will be used.

6. Goal-Seeker
7. Information Seeker
8. Systematic in Planning and Monitoring
Power Cluster
Power doesn’t mean bossing around. This means the
power to lead; to convince people of your ideas; the
power to make people believe in you.

9. Be Persuasive and Good in Networking

10. Possess Strong Self-Confidence
Other Factors to
consider
1. Personal interest
2. Knowledge/ Talents
3. Training / Work Experience
4. Government Support / Assistance programs
5. Rate of Growth of Business
Entrepreneurial
Self Test
20 questions
Be honest and choose your answer
wholeheartedly

Yes Maybe No
Entrepreneurial
Activities
Entrepreneurs engage in various activities –
some big, some small and other in between.

This activities could be TRADING,

MANUFACTURING or SERVICE
BUSINESS.
Trading or Merchandising
Is the buying of goods and selling the same
without change in form.
When goods are sold in small quantities, it is
called retailing.
When goods are in big quantities or in volume, it
is called wholesaling.
“sari-sari” store.
Manufacturing
The process of converting raw materials into
finished products.
He makes the raw materials to finished products by
applying direct labor and factory overhead.
 Raw Direct Factory
materials Labor Overhead
What you see in the The work in the raw Are the resources
completed product materials as it is needed or costs that
converted into need to be paid for
Ex. Wood is the raw finished product. in making products
materials for furniture other than the raw
Ex. The work of the materials and direct
carpenter on the labor.
wood to convert
wood to furniture
When an entrepreneur decides to go into
business, he has to consider several factors
1. Capital
2. Production Space
3. Storage for materials and finished Goods
4. Labor costs and labor supply
5. Factory overhead
6. Cost of manufacturing
7. Technology
8. Availability of raw materials
9. Competition
Service Business
Doing work for others. It is kind of business that
sells services.
Study the following
• Advantages of establishing a service Business
• Importance of service to the economy
• Service manner of delivery
• Services types of organization
• Services – Sponsorship Organizations