Republic of the Philippines

Bacoor City Campus

Bacoor City, Cavite

Management Department
Bachelor of Science in Hotel Management
BSHM 90: Entrepreneurship in Tourism and Hospitality
Second Semester, AY 2020 – 2021

Prepared by:

JOHN DARREN H. LUBATON

Instructor

Reviewed by

JANICE A. NEALEGA, MBA MENVYLUZ S. MACALALAD,

MBA,LPT
Chairperson Campus Administrator
Module 3: ENTREPRENEURIAL PROCESS

Entrepreneurship - The process of starting and running one’s own business

Entrepreneur - An entrepreneur is an individual who undertakes the risk associated with

creating, organizing, and owning a business

Entrepreneurial Careers
Steps in the Entrepreneurial Process

● Discovery
● Concept Development
● Resourcing
● Actualization
● Harvesting

1. Discovery: The stage in which the entrepreneur generates ideas, recognizes

opportunities, and studies the market

2. Concept Development: Develop a business plan: a detailed proposal describing the

business idea.

● Code of ethics
● Mission Statement
● Executive summary

Concept Development

● Choose business location

● Will a patent or trademark be required?

3. Resourcing: The stage in which the entrepreneur identifies and acquires the financial,
human, and capital resources needed for the venture startup, etc.
4. Actualization: The stage in which the entrepreneur operates the business and utilizes
resources to achieve its goals/objectives.

● $$ Grand Opening $$
● Day-to-Day Operations

5. Harvesting: The stage in which the entrepreneur decides on venture’s future growth,
development, or demise

● What is your 5-year or 10-year plan?

● Consider adding locations or providing different products/service
● Will you go public
ROLES OF ENTREPRENEURS IN ECONOMIC DEVELOPMENT

The Important role that entrepreneurship plays in the economy development of an economy can
now be put in more systematic and orderly manner as follows:

1. Entrepreneurship promotes capital formation by mobilizing the idle saving of the public.
2. It provides immediate large-scale employment. Thus, it helps reduce the unemployment
problem in the country, i.e., the root of all socio-economic problems.
3. It promotes balanced regional development.
4. It helps reduce the concentration of economic power.
5. It stimulates the equitable redistribution of wealth, income and even political power in the
interest of the country.
6. It encourages effective resource mobilization of capital and skill which might otherwise
remain unutilized and idle.
7. It also induces backward and forward linkages which stimulate the process of economic
development in the country.
8. Last but not means the least; it also promotes the country's export trade i.e., an
important ingredient to economic development.

Thus, it is clear that entrepreneurship serves as a catalyst of economic development. On the

whole, the role of entrepreneurship in economic development of a country can best be put as
“an economy is the effect for which entrepreneurship is the cause”

PROMOTES CAPITAL FORMATION:

Entrepreneurs promote capital formation by mobilizing the idle savings of the public.
They employ their own as well as borrowed resources for setting up their enterprises.

Such type of entrepreneurial activities leads to value addition and creation of wealth,
which is very essential for the industrial and economic development of the country

CREATES LARGE-SCALE EMPLOYMENT OPPORTUNITIES

1. Entrepreneurs provide immediate large-scale employment to the unemployed which is a

chronic problem of underdeveloped nations.
2. With the setting up. of more and more units by entrepreneurs, both on small and
large-scale numerous job opportunities are created for others.
3. As time passes, these enterprises grow, providing direct and indirect employment
opportunities to many more.
4. In this way, entrepreneurs play an effective role in reducing the problem of
unemployment in the country which in turn clears the path towards economic
development of the nation.
PROMOTES BALANCED REGIONAL DEVELOPMENT:

Entrepreneurs help to remove regional disparities through setting up of industries in less

developed and backward areas.

The growth of industries and business in these areas lead to a large number of public
benefits like road transport, health, education, entertainment, etc. Setting up of more industries
leads to more development of backward regions and thereby promotes balanced regional
development.

REDUCES CONCENTRATION OF ECONOMIC POWER:

Economic power is the natural outcome of industrial and business activity.

Industrial developments normally lead to concentration of economic power in the hands

of a few individuals which results in the growth of monopolies.

In order to redress this problem a large number of entrepreneurs need to be developed,

which will help reduce the concentration of economic power amongst the population.

WEALTH CREATION AND DISTRIBUTION

It stimulates equitable redistribution of wealth and income in the interest of the country to
more people and geographic areas, thus giving benefit to larger sections of the society.

Entrepreneurial activities also generate more activities and give a multiplier effect in the
economy.

INCREASING GROSS NATIONAL PRODUCT AND PER CAPITA INCOME:

Entrepreneurs are always on the lookout for opportunities. They explore and exploit
opportunities, encourage effective resource mobilization of capital and skill, bring in new
products and services and develop markets for growth of the economy.

In this way, they help increase gross national product as well as per capita income of the
people in a country. Increase in gross national product and per capita income of the people in a
country, is a sign of economic growth.

IMPROVEMENT IN THE STANDARD OF LIVING:

Increase in the standard of living of the people is a characteristic feature of economic

development of the country.
 Entrepreneurs play a key role in increasing the standard of living of the people by
adopting latest innovations in the production of wide variety of goods and services in large scale
that too at a lower cost. This enables the people to avail better quality goods at lower prices
which results in the improvement of their standard of living.

PROMOTES COUNTRY’S EXPORT TRADE

● TRADE
● EXPORT
● Export trade - Goods or any articles of commerce sold and shipped to other countries

DOCUMENTS USED IN EXPORT TRADE

● Foreign indent
● Shipping order
● Mate’s receipt
● Bill of landing
● Insurance policy
● Certificate of origin
INDUCES BACKWARD AND FORWARD LINKAGES
Entrepreneurs like to work in an environment of change and try to maximize profits by
innovation. When an enterprise is established in accordance with the changing technology, it
induces backward and forward linkages which stimulate the process of economic development
in the country.

FACILITATES OVERALL DEVELOPMENT:

Entrepreneurs act as catalytic agent for change which results in chain reaction. Once an
enterprise is established, the process of industrialization is set in motion. This unit will generate
demand for various types of units required by it and there will be so many other units which
require the output of this unit. This leads to overall development of an area due to increase in
demand and setting up of more and more units. In this way, the entrepreneurs multiply their
entrepreneurial activities, thus creating an environment of enthusiasm and conveying an
impetus for overall development of the area.

WHAT IS ENTREPRENEUR??

Entrepreneur is a person who takes initiative or one who comes up with an idea that
helps to create new jobs, encourage society and disperse wealth because of new products or
services that are introduced into the market. This gives great impact to each and every
individual as some ways or the other, we all get correlated. For example, with the introduction of
Uber rides it gave great impacts on an auto rickshaw and local buses whereas millions of
people got job car drivers to make that Uber ride possible.

ECONOMIC DEVELOPMENT

Economic Development is a process in which all efforts are made to increase national
income, national output, per capita income, per capita output and standards of living of people
by exploiting all the available resources of the country.

ROLL OF ENTREPRENEUR IN ECONOMIC DEVELOPMENT

1. WEALTH CREATION AND SHARING

By establishing the business entity, entrepreneurs invest their own resources and attract
capital (in the form of debt, equity, etc.) from investors, lenders and the public. This mobilizes
public wealth and allows people to benefit from the success of entrepreneurs and growing
businesses. This kind of pooled capital that results in wealth creation and distribution is one of
the basic imperatives and goals of economic development.
2. CREATE JOBS

Any business start-up requires human resources that could fulfill the demand of the
company thereby making earning for themself. Thus it’s very much important for an
entrepreneur to seek a maximum number of employees to work that could help each other in a
vice –versa manner.
Hence it’s proven that with each new startup by entrepreneurs more and more people will get
employed.

3. BALANCED REGIONAL DEVELOPMENT

Entrepreneurs setting up new businesses and industrial units help with regional
development by locating in less developed and backward areas. The growth of industries and
business in these areas leads to infrastructure improvements like better roads and rail links,
airports, stable electricity and water supply, schools, hospitals, shopping malls and other public
and private services that would not otherwise be available.

4. GDP AND PER CAPITA INCOME

India’s MSME sector, comprising 36 million units that provide employment for more than
80 million people, now accounts for over 37% of the country’s GDP. Each new addition to these
36 million units makes use of even more resources like land, labor and capital to develop
products and services that add to the national income, national product and per capita income
of the country. This growth in GDP and per capita income is again one of the essential goals of
economic development.

5. STANDARD OF LIVING

Entrepreneurs raise the standards of living of people by providing them with a new,
better and improved product. They supply goods having additional features at reasonable
prices. They also remove scarcity of essential commodities and introduce new products which
lead to variety in consumption.

6. EXPORTS

Any growing business will eventually want to get started with exports to expand their
business to foreign markets. This is an important ingredient of economic development since it
provides access to bigger markets, and leads to currency inflows and access to the latest
cutting-edge technologies and processes being used in more developed foreign markets.
Another key benefit is that this expansion leads to more stable business revenue during
economic downturns in the local economy.

7. COMMUNITY DEVELOPMENT
 Economic development doesn’t always translate into community development.
Community development requires infrastructure for education and training, healthcare, and
other public services. For example, you need highly educated and skilled workers in a
community to attract new businesses. If there are educational institutions, technical training
schools and internship opportunities, that will help build the pool of educated and skilled
workers. A good example of how this kind of community development can be promoted is Azim
Hashim Premji, Chairman of Wipro Limited, who donated Rs. 27,514 crores for promoting
education through the Azim Premji Foundation. This foundation works with more than 350,000
schools in eight states across India.
ETHICS IN WORKPLACE

Work Ethics

Ethics is a collection of values and behaviors which people feel are moral.

In other words, ―”ethics” is the name we give to our values or good behavior.

Positive work ethic is the collection of all the values and actions that people feel are
appropriate in the workplace.

WORK ETHICS PERFORMANCE STANDARDS

STANDARDS to be successful in a career you must possess both strong occupational

skills and good work ethics.

The following are ten areas of work ethic traits and performance standards you will be
presented and expected to exhibit in the workplace:
1.ATTENDANCE
● Attend 90% or more of the required class time
● Be tardy for class no more than eight times during a six weeks
● Notify instructor before planned absences or tardiness
● Be prepared for work by reading assignments and completing job
● Participate in activities by contributing to work discussion, completing assignments, and
being involved in any activities
● Begin and end work as expected
● Use work time appropriately

ATTENDANCE

● GOOD ATTENDANCE IS EXPECTED

● IT IS THE CORNER-STONE OF ADVANCEMENT
● DEPENDABILITY = RELIABILITY = MARKETABILITY

2.CHARACTER

● Display a high level of effort and commitment to performing and completing work
● Be honest in all situations
● Demonstrate trustworthiness and responsible behavior
● Displays loyalty, dependability, reliability, initiative, and self-discipline

LOYALTY

● In return for salary and benefits, the firm expects loyalty.

● With loyalty comes a sense of pride.
● All employees are goodwill ambassadors and salespeople for their
company.
● Employees must keep company ―”secrets”.
● The more the company succeeds the more you will succeed.
● If you cannot feel faithfulness and allegiance to your company, you should
seek a job elsewhere.

HONESTY

● Honesty is valuable
● Employees account for 30% of all ―”shortages
● Being honest is more than just not taking ―”things”
● In an 8 hour day --- how much time should be spent on a task?
● Using the company telephone for personal calls, checking email, or
texting is actually stealing from the company!!!
 Never lie on you’re:

● Application
● Time sheet
● Expense statements

Never cheat a:

● Customer
● Associate
● Employer

TRUSTWORTHINESS

● Higher trust = higher pay!!

● Closing or opening the office
● Supervising others
● Handing cash
● Complete a task –earn some trust
● Dependability & reliability = trustworthiness.
● Employers quickly see who can handle responsibility.

INITIATIVE

When employees have initiative, they are willing to see that work gets done. People with
initiative are:

● Motivated
● Enthusiastic
● Industrious
● Hard working

People with initiative see a job that needs to be done and do it! Beyond the ―”call of duty”.

SELF-DISCIPLINE & SELF-RESPONSIBILITY

● Self-discipline is a part of accepting responsibility

● Self-discipline requires the handling of emotions
● The hard part is making the best choice among the alternatives
3.TEAM WORK

● Encourage and facilitate cooperation, pride, trust, and group identity

● Foster commitment and team spirit
● Facilitate cooperation
● Respects the rights of others
● Respects confidentiality
● Is a team worker
● Is cooperative
● Is assertive
● Displays a customer service attitude
● Seeks opportunities for continuous

4.APPEARANCE

● Present a neat, clean appearance

● Practice personal hygiene
● Wear clothing suitable to the job, task and environment
● Uses appropriate verbal and written etiquette

Appearance deals with every aspect of how we perceive an individual. In an instant, we

form opinions about a person based on:
Appearance,

● Smell,
● Cleanliness,
● Mannerisms.

Depending on the career, acceptable appearances will vary.

Regardless of the job, there is no excuse for not being groomed correctly

5. ATTITUDE

● Demonstrates a positive attitude

● Appears self-confident
● Display a willingness to cooperate and accept constructive criticism
● Set realistic expectations

DEMONSTRATE A POSITIVE ATTITUDE

● Never underestimate the power of proper attitude

● Attitude determines how successful we will be.
● Attitude determines altitude.
 APPEAR SELF-CONFIDENT

● Self-confidence is prerequisite to success

● Willing to learn new skills
● To take opportunities
● To grow

Have Realistic Expectations of Self

● Setting realistic goals, and working to achieve them, helps us to

continually grow and develop

6.PRODUCTIVITY

● Follows directions and procedures

● Observe established policies on safety
● Notify proper authorities of circumstances or situations presenting potential safety
hazards
● Maintain equipment and supplies
● Keeps work area neat and clean
● Conserves materials
● Do not use or knowingly permit others to use tools and equipment improperly
● Make up missed assignments in a timely manner
● Stay on task and utilize time constructively

7.ORGANIZATIONAL SKILLS

● Prioritize and manage time and stress effectively

● Demonstrate flexibility in adapting to changes

TIME MANAGEMENT TECHNIQUES

● Ask for help

● Many are scared to ask for help
● Fear being seen as intrusive or dumb
● Help comes in many forms
● People all around you are paid to help
 TECHNIQUES SET TIMETABLES

● Measure how you’re doing

● Pocket, wall, or desk calendar
● Mark activity due dates appropriately
● Prior to the activity due date, fill in other days with activities that will help
you accomplish the mini steps that it will take to complete the big
assignment

8.COMMUNICATION

● Communicate accurate information to others in a professional and courteous manner

● Displays appropriate nonverbal (eye contact, body language) and oral (listening,
telephone etiquette, grammar) skills
● Listen attentively to others
● Good technology etiquette

The worst assumption a sender of a message can make is that the message will be
received as intended Language itself can be a barrier

● Unclear wording
● Slang
● Jargon
● Tone
● Another barrier is body language

9.COOPERATION

● Convey a willingness to assist others

● Work to resolve conflicts and to identify solutions in which all parties benefit
● Demonstrate concern for treating people fairly and equitably
● Follow the chain of command in resolving conflicts
● Displays leadership skills
● Appropriately handles criticism, conflicts, and complaints
● Demonstrates problem-solving capability
● Maintains appropriate relationships with supervisors and peers
10. RESPECT
● Treat instructors, staff and fellow students with respect, courtesy, and tact
● Do not engage in harassment of any kind
● Know the legal definitions of sexual harassment
● Deal appropriately with cultural/racial diversity