ENTREPRENEURS

AND

SOCIAL
ENTREPRENEURSHIP

Engr. Constantine F. Merida

CWTS Coordinator
 Objectives
After reading this lesson, you are expected to:
1. define entrepreneur and entrepreneurship.
2. enumerate and explain briefly each of the
stages of growth of community-based
enterprises.
3. state the Magna Carta for small enterprises.
4. explain the management principles in
managing a small business.
5. enumerate fund raising strategies of
religious groups and grass-roots fund-raising
ideas.
What is an entrepreneur?

(Gonzalez, 2003) An entrepreneur is somebody who

organizes, manages and assumes the risks of a
business/enterprise or community business.

(In French concept) an entrepreneur is an

adventurer, undertaker, and projector. His function is
to supply and accumulate capital.

(To Schumpeter) an entrepreneur is an innovator.

He does new things or does things in a new way.
(Peter Drucker) say that an entrepreneur always
searches for change, responds to it and exploits it
as an opportunity.

• (Say, an economist) explains that an

entrepreneur is one who shifts economic
resources from an area of lower productivity to
an area of higher productivity and greater yield.

• (The American Heritage Dictionary) defines an

entrepreneur as a person who organizes,
operates, and assumes the risk for business
ventures.
Characteristics of Entrepreneurs
1. Reasonable risk-takers.
Entrepreneurs enjoy challenges. But they are
careful and calculating

• As a matter of fact, life has many risks. Whether we

like it or not, we make decisions the results of which
are not certain. We are lucky if we make the right
decisions. But entrepreneurs are different. They
gather complete data about the situation, analyze
the data, and make their decisions.
 2. Self-confident, Entrepreneurs have strong faith in
their abilities. They believe they can be the best in
their field. They do not accept things as they are,
because they believe they can do things better.
- Entrepreneurs are optimistic individuals or
positive thinkers. They always think of success.

3. Hardworking, Successful people always attribute

their success to hardwork. Thomas A. Edison said
that success is 99 percent perspiration and 1 percent
inspiration.
4. Innovative. Entrepreneurs are creative. They do
things in new and different ways. For example, they create
new products or services, new methods of production, new
markets, and new sources of raw materials.
5. Leadership. Entrepreneurs are leaders by the
very nature of their functions. They are people who are
task-oriented. They are effective planners, organizers and
implementors. And they are achievers

6. Positive thinkers. Entrepreneurs are positive

thinkers. They think of success and bright sides.
Such success consciousness leads entrepreneurs
to success.
6. Positive thinkers. Entrepreneurs are positive
thinkers. They think of success and bright
sides. Such success consciousness leads
entrepreneurs to success.

7. Decision-makers. Entrepreneurs make

decisions. They cannot avoid this. Being creative
or innovative, they always make decisions on how
to improve their products, how to create new
markets, how to increase consumers satisfaction,
or how to maximize profits.
Habits and Traits of an Entrepreneur

• A good administrator
• A good leader
• A good negotiator
• A good communicator
• A good decision-maker
• A good follower
• Social Entrepreneurship
• Peter Druckers (1986) states that entrepreneurship
is a result-oriented attitude. An entrepreneur must have
strong values to accomplish what society needs and that
the value-driven innovator who enhances society should
be as equally important as the entrepreneur who
enhances economic growth.
• Social entrepreneurship often requires the
involvement or support of business and government in
education, health, security, housing, as well as myriad of
other social needs. Social entrepreneurs are hunter-
gatherers of our culture. They look around, see where
the foot is, and go to get it. The harvesting is very much
alive in the entrepreneur. They don’t change themselves
to fit the environment-instead, they use the environmeto
meet their needs.
 Stages of Growth of Community-Based
Enterprises

To get out of poverty means to move

up the continuum and eventually achieve a
certain degree of financial stability or
success. Not all the poor can completely be
alleviated from poverty. The Stage Model of
Community Enterprise Creation and
Development can gradually build up the
poor people’s capacity to manage and
establish a viable enterprise.
 Community Idea Ownership
The community tales ownership of the idea,
actively sharing information. Formal meetings
begin to take place. A decision is made to act
together as a com- munity group(intentionality).
The vision/purpose/ mission of the community
enterprise are created, e.g., minutes of meetings.
This might arise from different sources such as
experience, local knowledge, formal analysis,
suggestions, action from local people or
intervention by local authority
 Model of Community Enterprise Creation and
Development

Problem Identification

Recognition of a felt-need within a

community one or more persons perceive
that a need/opportunity exists in the
community.
Community Mobilization

Gathering of human, physical, financial and

technological resources. People and
organizations are mobilized. A tailor made
network is formed. Alternative ideas
evaluated. Additional documentation
created, e.g., feasibility study. Bank account
opened.
 Community Action
The enterprise is created as a legally
identifiable organization (boundaries).
Contracts are arranged with providers of
resources (exchange). Decisions on
responsibilities and allocation of tasks are
made. Any training necessary to turn the
idea into practice is organized and
implemented. Control and accountability
measures are established.
Community Reflection

Collection of performance
indicators; outcomes evaluated and
feedback to stakeholders is done.
Decisions are made concerning future
direction of enterprise. There is
recycling and redeployment of
resources.
What is R.A. 6977, otherwise known as the
Magna Carta for Small Enterprises?

• R.A. 6977, signed on 1991 January 24, is

an act to promote, develop and assist
small and medium scale enterprises
(SMEs) through the creation of a Small
and Medium Enterprise Development
(SMED) Council,
Who will benefit from the Magna
Carta for Small Enterprises?

Small and medium enterprises will

benefit from the Magna Carta for
Small Enterprises.
What is a small and medium enterprise?

A small and medium enterprise is defined as

any business activity or enterprise engaged
in industry, agribusiness and/or services,
whether single proprietorship, cooperative,
partnership or corporation whose total
assets, inclusive of those arising from loans
but exclusive of the land on which the
particular business entity’s office .
Categories

• Micro : less than- P 50,000

• Cottage: P 50,001- 500,000
• Small : 500,001- 5,000,000
• Medium: 5,000,001- 20,000,000
Small-Medium Enterprises Skills and Management
Training Program

• This program provides continuing training of

would-be small and medium business
entrepreneurs to improve and develop the
production processes and to conduct a forum for
the exchange of experiences among small and
medium entrepreneurs with experts and
consultants from private and government
agencies.
Types of SME Skills Training Program
* Food processing
• Meat and Fish processing
• Wine and Vinegar processing
• Skills upgrading on knitting leather craft, shell
craft, ceramics, coco midrib, etc.
• Bamboo furniture and craft
• Poultry raising
• Speed sewing
• Salt-making
• Basic carpentry training
• Basketry
• Embroidery
Controlling Your Enterprise
Managing a small business requires using
management principles as in a large
organization- planning, organizing, directing,
controlling, and staffing.

Planning- the planning function of looking into the

future often gets lost in the strenuous day-to-day
operation of a small business.
Organizing- deals with decision-making and how
to use resources to get objectives accomplished
Directing- is the leader’s job. It involves
guiding; effective directing comes from
good listeners.
Controlling- is setting procedures to stay on
top of progress. It is concerned with the
many ways to keep an eye on how the
business is doing.
Staffing- staffing your business with
competent people is critical to work
efficiency and establishing good customer
relationship.
Grass-Roots Fundraising

Grass-roots fundraising is raising

money from and by the constituency. Grass-
roots fundraising wins real victory on two
levels. First, money can be successfully
raised with the constituency, particularly if
specific and realistic fundraising goals are
set. Second, real victory can also be won
because the money raised from grass-roots
fundraising can be used for whatever the
group chooses.
Fund Raising Strategies

1. Ask Frequently.
2. Ask Volunteers.
3. Instill the expectation of giving.
4. Organize fundraising committees.
5. Ask personally and publicly.
Grass-Roots Fundraising Ideas
1. Ask at every opportunity.
This is the easiest idea. Ask money from the
members every meeting.
2. Raffle Draws
Consider holding a raffle in conjunction with other
events, banquets or programs as an extra money
maker.
3. Food and Wine Tasting
Organize food and wine tasting events in conjunction
with neighborhood restaurants. People pay to try small
samples of food.
4. Songs - Asking a community or choir to volunteer to
sing songs to people for Valentine’s Day or Christmas
celebration.
• Grass-Roots Fundraising Ideas
1. Ask at every opportunity.
• This is the easiest idea. Ask money from the members
every meeting.
2. Raffle Draws
• Consider holding a raffle in conjunction with other
events, banquets or programs as an extra money maker.
(Note that the government and some cities have laws
that regulate raffles).
3. Food and Wine Tasting
• Organize food and wine tasting events in conjunction
with neighborhood restaurants. People pay to try small
samples of food.
4. Songs
• Asking a community or choir to volunteer to sing songs
5. Phone-a-thons
• Many organizations have found that
regular solicitation of their members by
phone is their best source of membership-
related fundraising.
6. Benefit Concerts and Performance
• If performers can do shows for free, and
the use of ball is for free, benefit
performances are usually good
fundraisers.
7. Dinner
• Usually, a “dinner-for-a-cause” is enjoyable as a good
source of funds especially when the food and the
cooking are donated.
8. Ads/Ad Books
• Individuals, organizations, and businesses like to see
their names in print. Because of this, you can sell ads or
charge individuals a certain fee for them to be listed in a
booklet/souvenir program that will be distributed to the
public.
9. Flowers
• Consider selling flowers around holidays, such as
Christmas, Valentine’s Day, Mother’s Day and
Graduation Day, etc., as a way to raise funds.
10. Rummage Sales
• Rummage sales usually have no overhead costs, unless
you set up an ongoing thrift store. You make more
money when you display items outside than inside your
thrift store.
11. Baby Contests
• Conduct annual baby contests and “A Human Dolls
Parade”. These contests are sponsored by church and
other organizations. “Votes” are sold for a certain
amount. The baby who gets most “votes” wins a fancy
cup, a cash prize, a framed photo of him/her with his/her
parents, and other valuable prizes.
12. BINGO -A “Bingo Social” may be
potential source of funds for your
organization. A bingo game is strictly
monitored by the government.
13. Dance-for a-cause
• Sponsor a ballroom dancing/socialized
dancing/dance contest with tickets sold to
all participants and sponsoring agencies
and whose proceeds are intended to
support projects/programs, etc.
 ACTIVITY
1. Define entrepreneur and entrepreneurship.
________________________________________
________________________________________
2. Enumerate and explain briefly each of the steps in
enterprise creation and development.
___________________________________
___________________________________
3. List down and explain each of the
management principles in managing a small
business.
___________________________________.
4. State Republic Act 6977.
___________________________________
___________________________________

5. Enumerate the grass-roots fundraising

ideas.
___________________________________
___________________________________.
___________________________________
Tagay Party List