MODULE 1

Chapter I
Introduction to Entrepreneurship: A perspective

A. Entrepreneurship defined
 An economic activity of a person who starts, manages and assume the risk of a business enterprise. The
person who undertakes entrepreneurial activities is called an entrepreneur
 one who creates business in the face of risk and uncertainty for the purpose of achieving profit and growth
by identifying opportunities and assembling the necessary resources to capitalize on them.

B. Why BSHM Care?

1. The concept of career is changing
2. Career path transcend employers
3. Develop Core Skills
-continuous learning
-ambiguous problem solving
-adaptability
-networking
4. Entrepreneurs will win this generation

C. The Entrepreneur’s Common Activity

ENTREPRENEURS PROBLEM AT HAND ACTIONS

CONCERN
Identify an economic Dining experience are not allowed due -Restaurant/emerging F&B business
need to the pressing concern on public established FDS.
safety/ boarders are closed but food -Established partnerships with FDS
remains to be essential
Proceeds to assemble Sourcing out of Supplies for the -acquire funds/hire people/construct
the resources business operation physical stores
-localization of suppliers
Assumes the risk Ventures must be made -Prepare project study, advertisements,
maintain good relationship with internal &
external people.
-innovations/adoptability

D. Entrepreneurship & Economic Development

Economic development is a scheme aimed at improving the living standards of the nation’s citizenry. To achieve
economic development goals, proper management of the following elements are necessary:

1. Human resources (labor supply, education, discipline);

2. Natural resources (land, mineral, fuel, climate);
3. Capital formation (machines, factories, roads) and;
4. Technology. (science, engineering, management, entrepreneurship)

Note: the performance of an entrepreneur, however will depend much on the support provided by the
government.

E. The Entrepreneurs Task

Surviving enterprises are responsible for providing the following:

1. Products and services for customers and producers;
2. Employment;
3. Taxes;
4. Demand for suppliers’ products and services
5. Training facilities for future entrepreneurs.

F. The Application of ENTREPRENEURSHIP in the TOURISM & HOSPITALITY Industry

The past years have seen a burgeoning travel and hospitality sector which was abruptly halted as a result of the
health crises that surfaced in the year 2020. What is in the lookout are;
-novel experiences and events
 -alternative accommodation
-virtual booking
-exotic destinations-
-variations in product accompaniments

Some ideation worth considering are;

Destination & Build New places, secluded areas, untraveled territories newly opened sites, restored
Structures structures, historical structures never opened to the public,

Accommodation & Ecohotels, glamour camping, homestay, healing camps, health hotels,
Transportation new routes for walking tours, short-distance e-rides,
Experiences & Historical festivals, new convergence activities, virtual events, age/gender focused
Events activities, cook fest, time-sensitive activities
Food & Merchandise Fusion food, cultural heritage cuisine, only locally available produce, local drinks and
concoction, indigenous gifts & souvenirs, creative designs, unique packaging, food tours.

G. RISK and REWARDS of ENTREPRENEURSHIP

Enterprises are at risk of sustainability due Enterprises are encouraged to thrive with the following rewards
to

-poor access to finance -low start-up cost

-lacks of skills upgrading -relatively low overhead cost
-technological obsolescence -catering to small markets
-lack of information -opportunity to develop more personal relationships
-inability to make smooth business transition -agile respond to changing trends
-poor linkages
-inappropriate location
-management incompetence
-poor market access
-lack of infrastructure
-difficult business procedures
-severe global competition

I. The ABC's of An Entrepreneur

The characteristic of an entrepreneur maybe specified using words that can be identified from the letters A-Z.
A agile J judicious S sincere
B bold K keen T tenacious
C creative L loyal U unrelentin
g
D diligent M meticulous V vibrant
E energetic N noble W wise
F fair O observant X excellent
G grateful P persistent Y youthful
H humble Q quick Z zealous
I innovativ R responsibl
e e
 MODULE 2
Chapter II
The Nature of an Entrepreneurial Business
A. Financial capacity & Size of Business

People & Their Financial Capacity Number of Persons Possible Engagement in Entrepreneurship
Since most new ventures will be small business, it is expected that majority of efforts of those involved in the
propagation of entrepreneurship will focus on small business management.

The premise is that if small businesses are managed properly, their chances of becoming large enterprise are
increased. Since it is well-known that large enterprises bring certain benefits to the economy, small business
management is an activity worth pursuing.

B. What is a Small Business Enterprise

Small business may be defined by using any of the two approaches: market share or total assets.

Market Share Total Assets

- one which is independently owned
and operated and which is not
dominant in its field of operation.
-the term independently owned means
ownership is by private individual, a
partnership or corporation.
-the term not dominant indicates that
a small business does not control a
sizable share in the market.
-one having total assets that fall within a certain bracket. Example, the
magna carta for small enterprises (R.A. 6977) indicates that the firm must
have a total asset valued at P1.5 million to P15M to be considered as a
small business.
-all enterprise with total asset value bellow P1.5M are classified as
"microenterprise"

C. Types of Small Businesses

Small businesses maybe classified into five types: manufacturing, service, wholesaling, retailing and general
construction firms.

a. Manufacturing- manufacturing business is one involved in the conversion of raw materials into products needed in
the society. Examples are bakeries, tricycle sidecar assembly shops, bagoong manufacturers, restaurants and among
others.
b. Service- service businesses are those that provide service in one way or another. they may be further classified into
the following:
a. Business services- provide service to other business-like accountant firms, janitorial services,
security firms, collection agencies
b. Personal services- provide service to a person like tutorial services, massage parlor, voice lesson,
dance studios
c. Repair services- provide repair services to owners of various machinery and appliances. Ex. auto
repair shops, watch repair shops, plumbing services
d. Entertainment & recreation- includes movie houses, resorts, billiard pool, bowling alleys
e. Hotels & Motels
f. Education services- include Montessori schools, HS, and higher Institutions

c. Wholesaling- refers to the activities of persons or establishments which sells to retailers and other merchants,
and/or to industrial, institutional and commercial users, but who do not sell in large amounts to final
consumers. (Example are soft drinks wholesalers in local areas, dealers of supplies and office equipment, grains
wholesalers)

d. Retailing- covers all activities involved in the sale of goods and or services to the final consumers. the bulk of
retailing activities are performed by small businesses. examples are drugstores, fast food shops, appliance stores.

e. General Construction Firm- those engaged in the construction of buildings whether for private individual firms or for
the government. Many performs subcontracting jobs for the bigger contractors such as installing electrical facilities and
sewerage

D. Characteristics of Small Business

a. independent management- the owner is also a manager
 b. small capital requirement- businesses that requires only small capital and this can be supplied by a single or
a few individuals
c. mostly local operations- operates on a certain locality although there are cases where the market is not
confined in the local area.

E. Economic Importance of Small Business

Small businesses play an important role in the development of our economy. They assume the following
functions.

F. Advantages of Operating a Small Business

Individuals has various options to improve his economic lot. They are the following:
a. be an employee
b. be a professional
c. be a small business operator
-advantages of or benefits of operating a small business
1. opportunity to gain control over his own destiny
2. opportunity to reach his full potential
3. opportunity to reap unlimited profits
4. opportunity to make contribution to society and received recognition for the
efforts
G. Most Iconic and Other Promising Successful Filipino Entrepreneurs in 2021 according to
https://www.futurelearn.com/info/futurelearn-international/most-successful-entrepreneurs-philippines

Name Entrepreneurial Area of Recognition

 Henry Sy  Shoe Mart
 Tony Tan Caktiong  JFC
 Socorro Ramos  NBS
 John Gokongwei Jr.  J.G Holdings/ UR
 Edgar Sia  Mang Inasal
 Mariano Que  Mercury Drug Store
 Cresida Tueres  Greenwich Pizza
 Cecilio Kwok Pedro  Lamoiyan Corporation
 Alfredo M. Yao  Zest- O
 Gregorio G. Sanchez  Lacto PAFI
 Joe Magsaysay  Potato Corner
 Milagros Clarita & Doris  Goldilocks
Leelin
G. Disadvantages of Operating a Small Business
Although certain advantages accrue to the small business operator, there are certain disadvantages as well.
a. uncertainty of income
b. risk of losing your entire capital investment
c. lower quality of life until the business gets established
d. complete responsibility
e. having to serve undesirable customers
f. paperwork’s and other choirs
g. long hours and demanding work condition.
 MODULE 3
Chapter III
The Entrepreneurial Personality & Characteristics

II. Lecture
Clearly Entrepreneurship is not for everyone. But how do we know, beforehand, that a person is a good
prospect? What determines success and failures? It is important for those interested in entrepreneurship to know the
answers to these questions.
A. The CHARACTERISTICS of an ENTREPRENEUR
In preparation one should possess essential components such as
a. Grit & tenacity to begin something
a. Strong initiative
b. Willingness to take risk
c. Boldness to try new ideas
d. Persistence & perseverance in pursuing business success
e. Diligence & hard work to get things accomplished
f. Integrity in business dealings
g. Versatility to welcome innovations
h. Leadership & managerial aptitude

B. Some basic business skills

a. Active observation of potential products/services within the context of the community needs & wants
b. Close communication with customers, identification of their needs and expectation
c. Keen consideration of data gathered on consumer behavior, consumer process and purchase patterns
d. Careful adaptation of strategies involving 7ps of marketing mix. e. Astute handling funds, prudently using it for
product development, for people management, stakeholders’ involvement and government compliance
f. Strategic creation of healthy alliances and networks with suppliers, creditors, customers, government agencies,
regulatory bodies, industry associations and community

C. Good feel of the environment

a. Knowing where the business should go
b. Relating to other existing business in the area
c. Implementing business plan at the proper time
d. Getting ahead to potential competitors
e. Innovating for unique and latent products or services

D. Strong sense of empathy for the needs of the community

a. Seek relevant information's
b. Rely less on chance but on carefully studied data
c. Act decisively yet with prudence
d. Prepare to act on strategies with the counsel and the good stakeholders in mind
E. What Motivates People to Become Entrepreneurs
Not everyone desires to be an entrepreneur. Those who do however are motivated
by any or of all of the following:
a. desires to become one's boss
b. desire to financial reward
c. desire to create one's own job security
d. desire to improves one's quality of life
MODULE 4
The Search for a Sound Business Idea
II. Lecture
A new business venture is confronted with the immediate concern of gaining at least a foothold in the market it desires
to serve. An established business, however, has a different concern- it must grow or at least maintain its competitive
stance. In both cases, there is a need to adapt new sound business ideas. This could mean improvements to products
or services offered, or in the way customers are served, or some innovations in doing the business. The product or
services offering may be improved in terms of:
1. Performance- like the different star rating system in the hotel
2. Maintenance cost- like a car battery that requires less servicing than competing brands
3. Acquisition cost- like the latest low proved model of a certain brand of cellphone compared to competition
4. Salvage value- like the steel filing cabinet that has a higher salvage value
5. Uses- like the flypaper that can also be used as mousetrap

A. What Is A Sound Business

it is defined as the economic opportunity which is within the reach of the entrepreneur and which will provide him
with a desirable value.
Any successful venture started with the adaption of sound business idea. This are examples forms of business idea.
1. an old type of business can be professionalized
2. a standard product can be customized
3. New technology can be adapted to manufacture old products
4. Imported products can be replaced with local products
5. Business operations can be internationalized

B. Procedure in Determining the Best Business Plan

business ideas may be generated by anyone connected with the firm, but is very important that the most applicable idea
to the firm’s objective and resources is chosen
1. Preparation of the list of business ideas
- Unanticipated means
-deliberate search
2. screening of the listed ideas
-Market feasibility
-Technical feasibility
-Financing feasibility
-financial feasibility
3. Final selection
C. Methods for Searching Ideas
There are two general methods in generating ideas;
1. Unanticipated means- When the customer finds business ideas without serious effort. It includes;
a. The persons work- employers who are in direct contact with customers are sometimes confronted with demand fro
products or services that are not currently provided by the company. To the employee, this may be interpreted as an
opportunity for entrepreneurship
b. Persons Hobby- a hobby is a useful means of developing some skill which could be useful later when the hobbyist
decides to operate a business
c. Person’s acquaintances- when it takes another person to make him aware of the wisdom of starting a new business.
d. A Chance Event Encountered by the Person- there are times when a person’s encounters an event that will provide
him with clue to business venture
2. Deliberate Search- a disadvantage of an anticipated means in idea generation is the difficulty of ascertaining the
exact date when ideas will come pouring in. To offset this problem, a deliberate search for ideas is made. D. Screening
Generated Idea- Business ideas may be screened with the use of then following criteria.
1. Market feasibility- a business idea must pass the test of market feasibility. This means that there must be some
positive indication about the ff.;
a. stable and sufficient demand; and
b. potential of competitive strength of the firm
2. Technical Feasibility- business ideas often times appear easy to execute, but it is not really so when converting them
into real products or services with the required quality and quantity.
3. Financial Feasibility- there must be sufficient funds to finance operations. Sourcing of financing included;
a. owner’s savings
b. relatives and friends
c. financing institution
4. Financial Feasibility- the purpose of entrepreneurship is to provide a source of income to the entrepreneur. Any
business idea that cannot provide some indication of profitability must be screened out. Profit is a result of a financial
feasibility of the business idea.
E. Organizational Culture and Creativity effective innovations assure the continuous survival and growth of the
enterprise, but innovation can only thrive in a creative organization with a culture characterized. by the following;
a. Encouragement of creativity and risk taking- Creativity refers to activities involved in finding solutions to problems that
hinder the achievement of the firm’s objective.
b. Rewards for creativity- when an activity is rewarded, there is an assurance that such activity will continue to be
existing.
c. Open communication- free flowing exchange of ideas between the members of an organization is referred to us
"open communication."
d. Allowance of errors- It is not right to expect any activity to be devoid of imperfections, when an error is detected, a
move should be made to correct
e. A climate or participation- when an organization espouses participation, everyone will not hesitate to make a
contribution to the creative efforts of the organization.
f. Structural mechanism that Aids Creativity- the urge to create solutions to problems would be heeded by the innovative
person more easily if there are structural mechanisms within the organization to support the exercise.
g. Training and creative process- creative pursuits are a bit complicated and it will help if those expected to perform
such functions are properly trained.
h. Flexibility- creative employee should be allowed to engage in creative activities on hours most convinient to him and
to the company.