ENTREPRENEURSHIP

What is Entrepreneurship?

Entrepreneurship is the act of creating a business or businesses while building

and scaling it to generate a profit.

But as a basic entrepreneurship definition, that one is a bit limiting. The more
modern entrepreneurship definition is also about transforming the world by
solving big problems. Like bringing about social change or creating an
innovative product that challenges the status quo of how we live our lives on
a daily basis.

What the entrepreneurship definition doesn’t tell you is that entrepreneurship

is what people do to take their career and dreams into their hands and lead it
in the direction they want.
4 basic concept of being entrepreneur

1. Creating new products - entrepreneurs create products or services that can be

offered for a price.

2. Devoting time, money and effort- entrepreneurs devote their time and efforts
toward the attainment of their personal goals. In business, some of these goals
are to earn profits, to make products /service available in the community, to
provide employment and income for their family and other reasons.

3. Assuming the possible risks--entrepreneurs assume risk on the possibility of

losing whatever they put in.

4. Aim and go for success-( getting reward)- many entrepreneurs reap the
rewards of their effort through the generation of profit and business expansion.
What is an entrepreneur?

An entrepreneur is an individual who creates a new business, bearing most

of the risks and enjoying most of the rewards. The process of setting up a
business is known as entrepreneurship. The entrepreneur is commonly seen
as an innovator, a source of new ideas, goods, services, and business/or
procedures.

Entrepreneurs play a key role in any economy, using the skills and
initiative necessary to anticipate needs and bringing good new ideas to
market. Entrepreneurship that proves to be successful in taking on the risks
of creating a startup is rewarded with profits, fame, and continued growth
opportunities. Entrepreneurship that fails results in losses and less
prevalence in the markets for those involved.
Characteristic of entrepreneur

1. Motivation- you are by nature motivated. You put in long hours to get you ventures off
of the ground and invest everything you have to pursue your dreams.
2. Passion – you tend to be more driven by a passion for your offering as well as by a
desire to make a difference
3. Vision – you have a clear vision as to what you want to achieve, how you can
accomplish your objectives, and whom you need on your side to reach your goal.
4. Confidence- you are confident both of your self and in the products you sell.
5. Decision making- you not only have good decision- making skills but also have the
capacity to make those decision quickly in order to avoid missing opportunities.
Role of Entrepreneurs in the economy.

Entrepreneurs are vital in the economic development of the country.

They provide employment and income that moves the economy
forward.

Cycle of development

The cycle result to economic development as

more people are employed to enjoy an income
through the investment of an entrepreneur. The
government like wise benefits in the process
because entrepreneurs pay taxes, hence the
government has the funds to provide services to
the people.
Entrepreneurs are:

1. Mobilizer of capital. Entrepreneurs use their own savings as capital for their
business venture, How ever if they don’t have capital, they can barrow from the
bank to finance their intended business.
2. Service provider. Business ventures of entrepreneurs could be along the line
of service like parlors, spas, or coffee shops.
3. Employers. Entrepreneurs hire people to help them in their business.
4. Tax payers. Business establishments pay taxes to the government. Thus more
business more taxes and better government services.
5. Suppliers of products. Products and services are available through the efforts
of the entrepreneurs. Without them, a scarcity of certain products and services
will be felt.
Role of Entrepreneurship in Economic Growth

Micro, small, and medium enterprises (SMEs) are a vital

component of the economy.

Microbusiness, small and medium enterprises provide

employment.
It is important for the economy to increase the output of the
MSMEs to help the economy move and grow.

To attain this the MSMEs should have more access to credit,

better source of raw materials, modern technology and
marketing information.
Government has 3 strategies to help MSME:

1. Provide credit, technology, and marketing support to new enterprises

from P24 billion in 2004 to P309.98 billion in 2010.

2. Tap overseas Filipino workers to invest their earnings in MSMEs.

3. Promote greater involvement o Local Government Unit ( LGUs) in

promoting small business activities by providing them information on
business opportunities, available source of funds and the latest product
design.
In November 2002, RA 9178 was signed into law. RA 9178 or
the Barangay Micro Business Enterprise(BMBEs) Act of 2002
provide 5 incentives and benefits.

1. Exempt BMBEs from income tax and encourages LGUs to

exempt or reduce local taxes imposed on BMBEs.
2. Exempt BMBEs from coverage of the minimum wage law.
3. Improve credit delivery to BMBEs
4. Provide for technology transfer, productions and
management training and marketing assistance to BMBEs.
5. Provide trade and investment promotion to BMBEs
Entrepreneurs in Small and Medium Industries

Small and medium scale businesses are important in the country because of the
following reasons:

1. They help provide supply of product to the costumers

2. They help provide personal service.

3. Small and Medium scale business serves as a means of earnings to an

unemployed individual.

4. The small and medium scale businesses also provide employment to other
people

5. Small and Medium entrepreneurs also pay taxes to the government, and such
payment allows the government to provide services to the people.
Activity:

List down 5 entrepreneurs or business owners in your

barangay and present it in our google meet the kind of
businesses they are engage in.