APP 004: Entrepreneurship

MODULE 1 Hire people to increase Hire people to give them

ENTREPRENEURSHIP Dynamic process of business productivity productivity
vision, change, and Market player Market leader
creation that requires an
62% OF ADULTS Believe entrepreneurship is
application of energy and
a GOOD CAREER.
passion towards the
creation and GLOBAL More than half of people feel
implementation of new ENTREPRENEURSHIP starting one’s own business
ideas and creative MODEL (2018/2019) is a GOOD CAREER MOVE.
solutions. 40% Think it’s EASY TO START
a business.
PROCESS OF 1. Individual 49% Believe they have what it
INNOVATION AND NEW 2. Organization takes to do it.
VENTURE CREATION IS 3. Environment
ACCOMPLISHED 4. Process MOST POPULAR 1. Business and food
THROUGH FOUR MAJOR BUSINESS INDUSTRIES (11%)
DIMENSIONS: BASED ON GUIDANT 2. Health/beauty (10%)
FINANCIAL DATA 3. General retail (7%)
ENTREPRENEUR Shaped the face of business and 4. Home services (6%)
enterprise since the dawn of man.
HEALTH AND BEAUTY Saw a significant 34% rise
SOCIAL MEDIA From the first wheel to the advent (2018) due to the various related
ENTREPRENEUR of the internet, these clever global trends.
businesspeople evolved for
centuries into their most recent FOOD AND BUSINESS Saw a rise of 14%.
incarnation. AUTOMOTIVE DROPPED from the top five
EVOLUTION OF ENTREPRENEURS BUSINESSES spots.

NEOLITHIC The very first entrepreneur was MODULE 2

the ENGINEERING CAVEMEN. CHARACTERISTICS OF ENTREPRENEURS
- Better system of SELF-MOTIVATION You need to be able to PUSH
TRANSPORTATION and YOURSELF.
invented the wheel.
- You aren’t answerable to
CLASSIC ROMAN Entrepreneurs are present in all anyone else as an
OPEN-AIR MARKETS and shops. entrepreneur, and that
- Expanded by selling food and sometimes means that it’s
clothing to soldiers in military hard to get moving without
camps. anyone to make you.
GOLDEN AGE Entrepreneurs came in West in RISK TOLERANCE Understanding calculated risks
1840s to fin GOLD. that are more likely to pay off is
- They saw market potential on an important part of being an
treasure hunters and diggers. entrepreneur.
- You’ll need to be willing to
UTILITARIAN Tech-savvy entrepreneurs who
take a few risks to succeed.
ENTREPRENEUR based their business on
ELECTRICITY. FLEXIBILITY Be WILLING TO CHANGE as
- Turned up their business into needed.
“larger than life” corporations. - Stay on top of your industry
and be ready to adopt
BILL GATES Start-ups began navigation the
changes in processes and
(1980S-1990S) INTERNET.
product as they are needed.
- Any entrepreneur has a
business card ended in “.com” PASSION It is what will help you find
motivation when you are
SOCIAL MEDIA Entrepreneurs thrive on discouraged, and it will DRIVE
THINKER connectivity and social media YOU FORWARD.
colloquialism.
- Fuel for successful
In the future, entrepreneurs can become businessman. entrepreneurship.
BUSINESSMAN ENTREPRENEUR MANAGEMENT Understand how money works
SKILLS AND so that you know where you
Starts a business from an Starts a business from
KNOWLEDGE stand, and so that you run your
existing idea or concept own unique idea or
business on sound principles.
concept
VISION Best entrepreneurs have it as to
Focuses on cooperation Focuses on cooperation
what they want to achieve, how
Traditional Innovative and they can accomplish their
revolutionary objectives, and whom they need
Stay safe Risk taker and on their side to reach their
accountable goals.
- Acts like a COMPASS that
Profit oriented People (i.e., employee, points them in the direction of
customer, public) oriented opportunities.
APP 004: Entrepreneurship
CONFIDENCE Have to have it both in SOCIAL Enjoys working with and
themselves and in the products helping others and
or services they sell. purposefully avoids systematic
- If they believe in themselves, activities involving tools and
they will have the ability to machinery.
stay the course regardless - Social worker, caregivers,
difficulties or teachers
discouragement. ENTERPRISING Enjoys verbal activities to
MOST IMPORTANT  Time management influence others and to attain
SKILLS  Strategic thinking power and status.
ENTREPRENEURS  Efficiency - Managers, businessmen
NEED  Communication CONVENTIONAL Enjoys the systematic
 Curiosity manipulation of data, filing of
 Finance records, or reproducing
 Networking materials.
 Branding - Accounting, government
 Sales secretary
80% Make it through their FIRST 44% Had gone for a college degree
YEAR when it comes to running before venturing into running a
a business. business of their own.
70% Survive their SECOND YEAR. - Many have also gone for a
more advanced degree,
30% Remain in business by the
such as master’s or
TENTH YEAR.
doctorate.
BUSINESS According to popular
19.6% Self-employed professionals
FAILURES entrepreneur statistics, 82% are
work in the construction/trades
due to poor CASH
field.
MANAGEMENT.
- Become rampant in the MALE Known to outnumber female
world. ENTREPRENEURS entrepreneurs significantly.
- Men account for 73% of
SMALL BUSINESS As an entrepreneur, dealing
small business owners,
OWNERS with distraction from work can
while women make up 27%.
be a bit difficult.
- 72% don’t check their mobile MODULE 4
device while eating with BUSINESS Also known as an enterprise,
others. This approach helps agency or a firm, is an entity
them maintain a healthy involved in the provision of
work-life balance. goods and services to
MODULE 3 consumers.
- Defined as an organization
PERSONALITY Refers to the pattern of
or enterprising entity
characteristics that
engaged in commercial,
distinguishes one person from
industrial, or professional
another.
activities.
- Includes the person’s traits,
values, motives, genetic CLASSIFICATION OF BUSINESS
blueprints, attitudes, PUBLIC Owned by the state and controlled
emotional reactivity, ENTERPRISES through a public authority.
abilities, self-image,
- Land Bank of the Philippines
intelligence, and visible
behavior patterns. PRIVATE Managed by independent
ENTERPRISES companies or private individuals
TYPES OF PERSONALITY
rather than by the state.
Study From Holland
Quoted in Patton and Mcmahen 2006
- Globe Telecoms, Jollibee, SM
City
REALISTIC Prefers activities involving
aggressive behavior and BUSINESS Organization that uses economic
physical exertion requiring skill, ENTITY resources to provide goods or
strength, and coordination. services to customers in exchange
for money or other goods and
- Chef, computer technicians
services.
INVESTIGATIVE Prefers to be analytical,
TYPES OF BUSINESS
curious, methodical, and
precise. SERVICE BUSINESS Provides intangible products.
- Crime investigator, detective - SERVICE TYPE FIRMS offer
professional skills, expertise,
ARTISTIC Expressive, non-conforming,
advice, and other similar
original and introspective.
products.
- Songwriter, architect, - Salon, repair shops, schools,
painter banks, accounting firms, and
APP 004: Entrepreneurship
law firms. PARTNERSHIPS: all
partners have unlimited
MERCHANDISING Buys products at wholesale price
liability.
BUSINESS and sells the same at retail price.
- LIMITED PARTNERSHIPS:
- Known as BUY AND SELL creditors cannot go after the
businesses. personal assets of the limited
- They make profit by selling the partners.
products at prices higher than
their purchase costs. CORPORATION Has a separate legal personality
- Grocery stores, convenience from its owners.
stores, distributors, and other - Ownership in a stock
resellers. corporation is separated by
shares of stock.
MANUFACTURING Buys products with the intention
- The owners enjoy limited
BUSINESS of using them as materials in
liability have limited
making a new product.
involvement in the company’s
- There is a transformation of operations.
the products purchased.
- Bags and clothing LIMITED LIABILITY Hybrid forms of business that
manufacturers COMPANY (LLC) has characteristics of both a
corporation and a partnership.
CHINA World’s largest
- HYBRID BUSINESSES are
manufacturer
companies that may be
ASIAN NATION Responsible for classified in more than one
producing more than type of business.
$2,922,520 million in - Ex: restaurant
product each year, which
COOPERATIVE Business organization owned by
is more than both the
a group of individuals and is
European Union (#2) and
operated for their mutual
the United States (#3).
benefit.
HALF OF ALL WORKING Have jobs in retail.
FUNCTIONS OF BUSINESS
TEENAGERS
PRODUCTION Creation of goods and services with
1/3 OF RETAIL Work part-time and 60%
FUNCTION the help of certain processes.
EMPLOYEES of them are women.
- To meet the specified time
SOCIETY FOR HUMAN Retail is the highest schedule.
RESOURCES industry in employee - To fulfill the quantity requirements.
MANAGEMENT turnover. - To produce minimum cost.
CATEGORY OF HOTELS/ Number 1 in turnover and MARKETING Process of getting goods and services
RESTAURANT recreation/ entertainment FUNCTION into their hands of the consumer with a
is second. view to satisfying the needs and
MODULE 5 desires.
BUSINESS STRUCTURE One of the first decisions - To decide new product
to make as business development.
owners. - Promotion
- Pricing
FORMS OF BUSINESS ORGANIZATION
FINANCE Responsible for three decisions and
SOLE Business owned by only one FUNCTION their proper implementations.
PROPRIETORSHIP person. - Investment decisions
- The owner faces UNLIMITED - To divide capital structure—fixed
LIABILITY; meaning, the and working.
creditors of the business may - Dividend decisions
go after the personal assets
of the owner if the business HUMAN Concerned with increasing the
cannot pay them. RESOURCE effectiveness of human performance in
- According to SBA, it is the FUNCTION any organization.
easiest and most inexpensive - Selection and job analysis
form of business to establish. - Training
- Owner has full control over - Promotion and transfer
decisions affecting the - Employee involvement
business, provided they are COCA-COLA One of the most valuable brands in the
within legal parameters. world.
- Owner receives all the
- Its iconic red-and-white logo is
income and profit that the
recognized by 94% of the globe’s
business generates.
population.
- If desired, owner can dissolve
- However, when the brand was
the business easily.
launched in China, there was a lot
PARTNERSHIP Business owned by two or more of research that went into finding
persons who contribute the right characters to transliterate
resources. the name. some of the kanji that
- GENERAL sounded like the name translated to
APP 004: Entrepreneurship
“female horse fastened with wax” TOWARDS correct amount with no
and another meant “bite the wax GOVERNMENT manipulation
tadpole”. They finally settled on the  To encourage fair trade
characters that read ke kou ke le, practices
which means “delicious happiness”.  To avoid monopoly practices
and to improve national
income.
MODULE 6
ETHICS Study of moral obligation involving
the distinction between right and
wrong. As a consequence, this
study paved the way for the
adaptation of general rules of
conduct in the society.
BUSINESS ETHICS Rules about how entrepreneurs
ought to have.
PUBLIC IMAGE Activities of an entrepreneur
towards the welfare of the society
earn goodwill and reputation for
the business.
EMPLOYEE Employees are the part of the
SATISFACTION system. If you satisfy your needs,
then you are doing social work.
ETHICAL It is the belief that what
LEADERSHIP entrepreneur does has a strong
influence on employees.
ENVIRONMENT Institutions can do many things to
MANAGEMENT protect and preserve the natural
environment which includes
plastic less business by giving
paper bag, creating eco-friendly
product, by eliminating production.
CONSUMER Consumers have become very
AWARENESS conscious about their rights. If you
are giving high quality products at
cheap rate, that is kind of social
responsibility.
SOCIAL RESPONSIBILITIES OF AN ENTREPRENEUR
RESPONSIBILITIES  Fair wages and salaries
TOWARDS  Skill development programs
EMPLOYEES  Good and safe working
environment
 Adequate basic facilities
RESPONSIBILITY  Charge reasonable price
TOWARDS  Right quality of goods in right
CUSTOMERS quantity
 No use of manipulated or false
advertisements
RESPONSIBILITY  Fair return on investment
TOWARDS  Safety of invested capital
SHAREHOLDERS  Regular and complete
information about the
performance and progress.
RESPONSIBILITY  Maintain healthy and
TOWARDS cooperative inter-business
SUPPLIERS, relationship
CREDITORS  Provide accurate and relevant
information to creditors
 Prompt payment of interest on
borrowed funds
RESPONSIBILITY  Creation of job opportunities
TOWARDS PUBLIC  Improvement in living standards
 Make best use of society’s
resources for their welfare
RESPONSIBILITY  Payment of corporate tax in