The learners…

a) explain the key concepts of common

competencies
b) Explain the core competencies in
entrepreneurship
“Opportunity comes from
one person’s idea that
influences others to take
action.”
What comes into your mind when
you hear the words entrepreneur
and entrepreneurship?
1. It outlines the operational definitions of the
terms “entrepreneur” and entrepreneurship”
and make clear distinction between them.
2. It defines their differences in terms of concepts,
beliefs, understanding, and approaches
adopted by an ordinary businessperson.
3. It highlights the basic theoretical
entrepreneurial concepts, principles,
approaches, and strategies used in
entrepreneurship.
4. It aims to build a strong entrepreneurial
foundation to pique an interest among students
to become successful entrepreneurs.
 Do you imagine yourself
becoming an entrepreneur and
managing your own business in the
future?
 There is no universally accepted definition of
entrepreneurship.
 Some of the reasons for this are as follows:
1. Different views and theories have been develop
in the field of entrepreneurship.
2. The scholars who provided the definition for
entrepreneurship are largely influenced by
their own individual beliefs.
3. The entrepreneurial models introduce by
scholars are predominantly influenced by the
prevailing economic situations during specific
periods in history.
4. The framework and methodologies of
researches on entrepreneurship are depend on
the theories.
 the Austrian economist and political
scientist, gave much emphasis on the
concept of product innovation,
marketing and production methods
 According to him, there are very few
among the millions in the population
who can be considered as
entrepreneurs.
Concept of Entrepreneurship

Entrepreneur
- was derived from the French word
“entreprendre” which means to
undertake. This refers to those who
“undertake” the risk of new enterprises.
- On the other hand the term
entrepreneurship is comes from the word
entrepreneur.
- An enterprise is created by an
entrepreneur and process of its creation
is called entrepreneurship.
Entrepreneur
according to American Heritage Desk
Dictionary entrepreneur as a person who
organizes, operates, and assume the risk
of business venture.

defined as a person who strongly

advocates and correctly practices the
concepts and principles of
entrepreneurship in operating and
managing the self-owned business
venture.
 the art of observing correct practices
in managing and operation a self-
owned wealth-creating business
enterprise by providing goods and
services that are valuable to the
customers.
Small Business
-refers to a business or enterprise that
correctly adopts and practices the principles of
entrepreneurship. It is owned by one person
with a limited workforce of not more than 20
persons.

Ordinary Small Business

-pertains to a business enterprise managed
and operated by an owner who is not advocate
of and does not practice the concepts and
principles of entrepreneurship.
1. Personality Factors
Personal factors, are an entrepreneur core
competencies which include
a) Initiative
-does things before asked
b) Proactive
-identifies and utilizes opportunities
c) Perseverance works against all odds to
overcome obstacles and is never complacent
with success
d) Problem-solver
- develops and maintain relationship
with customers and financiers; conceives
new ideas and introduces innovative
solutions
e) Persuasion
-convinces customers and financiers
to patronize his business
f) Self-confidence
-makes decisions and sticks to his
decisions
g) Self-critical
-learns from his mistakes and from
experiences of others
h) A Planner
-collects information, prepares a
plan, and monitors performance
i) Risk-taker
-is willing to take calculated risks
2. Environmental Factors
These factors relate to the conditions in which
an entrepreneur has to work.
a) Political climate
b) Legal system
c) Economic
d) Social conditions
e) Market Situations
1. Economic and dynamic activity
-entrepreneurship is an economic activity
because it involves the creation and operation
of an enterprise with a view to creating value or
wealth by ensuring optimum utilization of
scarce resources.
2. Innovation
- entrepreneurship involves a continuous
search for new ideas. It compels an individual
to continuously evaluate the existing modes of
business operations so that more efficient and
effective system can be evolved and adopted.
3. Profit Potential
-is the level of return or compensation to
the entrepreneur for taking on the risk of
developing an idea into an actual business
venture. Without profit potential, the efforts of
entrepreneurs will be merely an abstract and
theoretical leisure activity.
4. Risk Bearing
-The essence of the entrepreneurship is
the willingness to assume risk arising from the
creation and implementation of new ideas.
New ideas are always tentative and their results
may not be instantaneous and positive.
1.Innovation
-an entrepreneur is basically an innovator
who tries to develop new technology, products and
markets.

Ernest L. Cu
-he transformed a simple data entry service
company into becoming one of the country’s
largest outsourcing service providers. This sources
of this company are mostly contracts for
generating projects, which involve customer
service relationships and IT services. The CRM
(Customer Relationship Management) services
became quite successful, which spurred the growth
of telemarketing services
2. Assumption of Risk
-an entrepreneur by definition, is a risk
taker and not a risk shirker. He/she is always
prepared for assuming losses that may arise on
account of new ideas and projects undertaken
by him/her.

Ex. Corazon D. Ong-CDO

3. Research
-an entrepreneur is a practical dreamer
and does not a lot of ground-work before
taking a leap in his/her venture.
Ex. Gregorio G. Sanchez-LactoPAFI Probiotic
Bacteria
4. Development of Management Skills
- the work of an entrepreneur involves
the use of managerial skills which he/she
develops while planning, organizing, staffing,
directing, controlling and coordinating the
activities of business.

Ex. Socorro Ramos-National Bookstore

5. Overcoming resistance to change
-New innovations are generally opposed
because they make them change their existing
behavior patters. An entrepreneur always first
tries new ideas at his/her level.
-it is only after the successful
implementation of these ideas that an
entrepreneur makes these ideas available to
others for their benefit. This is a reflection of
his/her will power, enthusiasm and energy
which helps him/her in overcoming the
society’s resistance to change
5. Overcoming resistance to change

DIOSDADO BANATAO
-saw the opportunity of setting-up his
own company by designing chip sets. In no
time, he was able to raise $500,000 as seed
capital to put up Monstroni in 1985. His
company’s determination paid off after they
successfully develop the first system logic chip
set that lowered the cost of building personal
computers that were more powerful. He then
went on to build another company called Chips
and Technologies, which created another chips
set enhancing the so-called graphic adapter.
6. Catalyst of economic development
- an entrepreneur plays an important role
in accelerating the pace of economic
development of a country by discovering new
uses of available resources and maximizing
their utilization.
1. Innovative Entrepreneurs
-these entrepreneur have the ability to
think newer, better and more economical ideas
of business organization and management.
They are the business leaders and contributors
to the economic development of a country.

Inventions like the introduction of a small car

‘Nano’ by Ratan Tala, organized retailing by
Kishore Biyani, and making mobile phones
available to the common man by Anil Ambani
are the works of innovative entrepreneurs.
2. Imitating Entrepreneurs
- these entrepreneurs are
people who follow the path shown
by innovative entrepreneurs. They
imitate innovative entrepreneurs
because the environment in which
they operate is such that it does
not permit them to creative and
innovative ideas on their own.
3. Fabian Entrepreneurs
- these types of entrepreneurs are
skeptical about the changes to be
made in the organization.
-they do not initiate any
inventions but follow only they are
satisfied with its success rate.
-they wait for some time before
the innovation becomes well tested by
others and do not result in a huge loss
due to its failure.
4. Drone Entrepreneurs

-drone is a person who lives on the

labor of other.
-are those individuals who are
satisfied with the existing mode and
speed of business activity and show
no inclination in gaining market
leadership
-in other words, drone entrepreneurs
are die-hard conservatives even
ready to suffer the loss of business.
5. Social Entrepreneurs
-drive social innovation and
transformation in various fields
including education, health, human
rights, workers’ rights,
environment and enterprise
development.

Ex. Cecilio K. Pedro-Hapee

Toothpaste