SALIENT FEATURES OF

ENTREPRENEURSHIP
LESSON 2
 The salient features of
entrepreneurship provide better
understanding of the whole concepts.
They also act as the point of reference
in determining whether a particular
business endeavor is operating within
the realm of entrepreneurship.
 SALIENT FEATURES OF
ENTREPRENEURSHIP

Providing Opening and

values to managing
Wealth- customers self-owned
creating business
venture
Entrepreneurship

Art of
correct Risk-taking
practices venture
1.Entrepreneurship is an Art of
Correct Practices
 Entrepreneurship is an art and not a
science. It is not governed by fixed and
absolute rules, whereas science is.
Thus, there is constant change which
denotes movement and innovation.
Entrepreneurship, therefore, is not
static or stagnant.
2.Entrepreneurship Is a Wealth-
Creating Venture
 This feature sounds simple, but this has
been most misconstrued because of the
word wealth. We often hear the old
maxims “Health is wealth” or
“Knowledge is wealth”. However, this
is not the concept of wealth in
entrepreneurship.
Entrepreneurship is operating within
the concept of wealth creation rather
than profit generation.

Wealth is created when the benefits

derived by the owner in providing
goods and services to the customers
are abundant enough to cover the
costs incurred by the business.
The creation wealth must
gradually accelerate and
benefit both the owner and
the community.
Wealth is created when the
value of the business has
increased abundantly and the
life of is owner has improved
The adoption of the wrong
concept of wealth creation
is the primary reason why
most of the small business
venture in the Philippine do
not prosper.
3. Entrepreneurship Provides
Valuable Goods and Services
 Entrepreneurship creates economic
wealth by providing goods and
services to the consumers.

These goods and services must have a

value in order to create wealth.
Otherwise, they become wasted.

Valuable goods and services highly satisfy

the target buyers in terms of quality and
price.
4. Entrepreneurship Entails
Opening and Managing the Self-
Owned Enterprise
 The entrepreneur opens his/her own
business under the principle of
entrepreneurship.

 It must be self-owned in order to qualify

as an entrepreneurial endeavor.

 A business is considered self-owned

when the person managing its daily
activities is also its owner.
5. Entrepreneurship Is a Risk-Taking
Venture
 An entrepreneurial venture is born because
of new ideas or opportunities, risk comes
simultaneously with the venture.
 Risk cannot be detached from any
entrepreneurial venture and the only way to
remove it is to close the venture.

 The risk in entrepreneurship is called

business risk.
Lesson Summary
 1. Entrepreneurial concepts and
principles are not fixed.
 2. A wealth-creating venture is an
entrepreneurial undertaking
wherein wealth is created.
 3. Value is basically the opposite of
waste. Products and services are
considered valuable when they provide
additional benefits to the buyers and
users.

 4. All businesses, whether big or

small, are operating within the
concept of risk-taking because of
uncertainty