Republic of the Philippines

DEPARTMENT OF EDUCATION
Region 2
Division of Cagayan
STA. ANA FISHERY NATIONAL HIGH SCHOOL
Santa Ana, Cagayan

KEY CONCEPT

Is there such a thing as a ‘natural-born entrepreneur? According to this Idea there is not. Specific techniques and habits must be
practiced and developed by all would-be entrepreneurs. And as well as business competencies, entrepreneurs need interpersonal and
self-leadership skills too; however, these are often overlooked.

Commonly, characteristics such as risk seeking, assertiveness and vision are considered typical of a successful entrepreneur. But these
are innate predispositions or aspects of temperament; by using them as yardstick, it is wrongly concluded that only certain types of
people make good entrepreneurs or are capable of worthwhile innovations. Instead, this Idea proposes that ‘entrepreneurial behaviour’
can be learned and developed. The question is not who entrepreneurs are, but what they do, and more important than business skills
can be other competencies that provide a foundation for those business skills.

The research behind this Idea is based on empirical studies of hundreds of entrepreneurs, which revealed that entrepreneurial
behaviour is the result of a combination of:

strong motivation to achieve something;

the capabilities to achieve it.

Furthermore, there are three levels of competencies, which all entrepreneurs need:

1. Personal competencies: creativity, determination, integrity (honesty and fairness), tenacity (determination), emotional balance and
self-criticism.

2. Interpersonal competencies: communication, engagement/charisma, delegation (control), respect.

3. Business competencies: business vision, resource management, networking, negotiating skills.

6 Introductory Entrepreneurship Concepts that Every Student Must Learn

Business is the activity of making, buying, selling or supplying goods or services for money. In other words, a business is a
commercial organization such as a company, shop/store or factory. One of the primary goals of business is to make money. Businesses
that don’t make money don’t stay around for very long. Another concept for making money in business is called revenue. A more
detailed description of the concept of revenue is:

Revenue is the amount of money that is brought into a company by its business activities. Revenue is calculated by multiplying the
price at which goods or services are sold by the number of units or amount sold. Equally important to the concept of revenue is the
concept of profits. Profits are typically main goal of every business aside from fulfilling a need or problem that a customer has. A
formal definition for the word is below.

Profit is the money a business makes after accounting for all the expenses. Regardless of whether the business is a couple of kids
running a lemonade stand or a publicly traded multinational company, consistently earning profit is every company’s goal. In short,
Revenue – Expenses = Profit. While the three definitions mentioned above are essential to understanding what entrepreneurship is, it
is the following three definitions that need to be known to truly understand what entrepreneurship means.

An entrepreneur is a person who starts a business and is willing to risk loss in order to make money. One who organizes, manages,
and assumes the risks of a business or enterprise. The word Entrepreneur is derived from the French word entreprendre, which means
“to undertake.” It ultimately has come to mean, someone who is willing to undertake a new venture in order to present an idea to the
marketplace. One thing that an entrepreneur is not, is an employee. As such, the following definition of an employee should be
conveyed to give a better idea of what an entrepreneur is.

An employee is a person employed for wages or salary. Therefore, an employee is a person working for another person or a business
firm for pay. With your students new clarity on exactly what an entrepreneur is, now you can provide them with the details of exactly
what entrepreneurship is. To summarize, you can give them the following definition.

Entrepreneurship is the pursuit of opportunity without regard to resources currently controlled. Including business situations where
one engages in projects involving risk where profit is uncertain. The concepts mentioned are just a few of the primary concepts that
one must understand to truly understand what entrepreneurship is.

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Prepared by: Sir Cams