DEFINING KEY TERMS -

ENTREPRENEURSHIP

Charlie De La Cruz
Instructor
NATURE AND CONCEPT OF ENTREPRENEURSHIP
 ENTREPRENEUR

❖is derived from the

French verb
“enterprendre” (an-
troe-prandr) which
means “to undertake”
 ENTREPRENEUR

❖A process of action of
entrepreneur who is always
in search something new to
exploit new ideas into
gainful opportunities by
accepting the risk and
uncertainly of the enterprise
 ENTREPRENEUR

❖Entrepreneurs are
innovators, willing to take
risk and generate new ideas
to create unique and
potentially profitable
solutions to modern-day
problems
 ENTREPRENEURSHIP

❖It is the art of observing

correct practices in managing
and operating a self- owned
well creating business
enterprise by providing goods
and services that are valuable
to the customer.
 ENTREPRENEURSHIP

❖An enterprise is created by

entrepreneur the process of
its creation is called
entrepreneurship.
.
 SOURCES OF
ENTREPRENEURIAL IDEAS

❖The creation of an
entrepreneurial idea leads
to the identification of
entrepreneurial
opportunities, which in turn
results in the opening of an
entrepreneurial venture.
 SOURCES OF
ENTREPRENEURIAL IDEAS

❖The entrepreneurial process of creating

a new venture is shown in the diagram
below:
 The Entrepreneurial Process of
Creating a New Venture

❖As a future entrepreneur,

always remember that a
business must be firmly
established on existing
business opportunities, and
that there can be no business
opportunities in the absence
of an entrepreneurial idea.
❖In contrast, the owner of an ordinary
small business usually opens a business
even if there are no business
opportunities existing in the community. As
a result, the business can hardly move
from where it started even after several
years of operation. Thus, it all boils down
to the basic need to identify the sources
of entrepreneurial ideas, some of which
are as follows:
 ❖ Entrepreneurial ideas arise from
the changes that happen in the
external environment with
entrepreneurial implications. Not
everyone welcomes changes in the
external environment. However, a
person with an entrepreneurial drive
views these changes positively. He/
she determine what business
CHANGES IN opportunities they may provide.
THE ENVIRONMENT
❖The term external environment
lesson refers to the physical
environment, societal environment,
and industry environment where
the business operates.

1. The Physical Environment includes

(Climate, Natural Resources, Wildlife)
2. The societal environment includes the
various forces like (Economic forces,
Sociocultural forces, Political forces,
Technological forces)

3. The Industry environment of the

business includes (Government, Competitors,
Suppliers, Customers, Creditors, Employees)
❖As an entrepreneur, you just be keenly
observe and be vigilant to the reactions
of the people to the changes in the
external environment. For example, one
factor in the physical environment that
may dramatically change is the climate.
The temperature is very high during
summer but very low during the rainy
season.
❖A person with entrepreneurial drive
can be very creative and innovative
in identifying the entrepreneurial
change. He/she can open a business
venture that responds to the needs
of the people during summer and
during the rainy season.
 ❖Discovery and advancement in the
use of technology are another good
TECHNOLOGICAL DISCOVERY &
source of entrepreneurial ideas and
ADVANCEMENT opportunities. Most people welcome
technological discoveries and
advancement but cannot identify or
determine entrepreneurial
opportunities stemming from them.
TECHNOLOGICAL DISCOVERY & On the other hand, a person with
ADVANCEMENT entrepreneurial interest looks at the
possibility of business opportunities in
any discovery or advancement in
technology.
 ❖The priorities, projects, programs,
and policies of the government
are also good sources of
entrepreneurial ideas

❖The term Government in this

lesson refers to the local
government ( municipality, city
or provincial ) or the national
GOVERNMENT’S THRUST,
PROGRAMS AND POLICIES
government and its branches
❖The programs and agenda of the Philippine
government intuitively address the needs of
the Filipino People. There are also instances
when the government responds to the call
of international agencies or the world
market.
❖Whenever there are changes in the policies
and programs of the government, new
entrepreneurial ideas are likely born.
 PEOPLE’S INTEREST

❖The interest, hobbies, and

preferences of people are a rich
source of entrepreneurial ideas.
For example, the rise of
amusement parks, nightspots, and
nature farms could be a response
to the need of people for fun and
relaxation.
 PEOPLE’S INTEREST

❖However, an entrepreneur
must be keen in identifying
the cycle of interest and
trends of his target market
since these tend to
continuously change.
❖As a future entrepreneur, your
business venture must be adaptive
to the interest and hobbies of the
people to protect and sustain your
business. Keep evaluating the
interest of your target customers.
 PAST EXPERIENCES

❖Past experiences and

exposures are also good
source of entrepreneurial
ideas. The expertise and skills
developed by a person who
has worked in particular field
may lead to the opening of a
related business enterprise.
 ❖For example, an auditor who has
learned the appropriate auditing
and management advisory skills
and techniques in a prominent
auditing firm can start his/her
entrepreneurial venture by
opening his/her own auditing
office. Thus his/her relevant job
experiences in the past can lead
PAST EXPERIENCES to that entrepreneurial venture.