Module 2

RISK AND REWARDS

Unit 1
Origin and Nature of Entrepreneurship
Module 2
▸ Risk and Rewards
of Going into
Business
MODULE OBJECTIVES:
▸

At the end of this module, each

student will be able to:

1. Identify the potential rewards

and risks of going into business
Introduction
▸ It is a well-worn cliché that entrepreneurs are
risk takers, and there's certainly some truth to
this insight because the very act of founding a
business requires you to strike out on your own
and put your personal assets on the line. The
rewards of entrepreneurship can justify these
risks, though, and they include both the potential
tangible benefits of earning a good living and the
intangible perks of being your own boss.
Entrepreneur's Credo
▸ "I do not choose to be a common person. It is
▸ my right to be uncommon—if I can. 1 seek
▸ opportunity—not security. I do not wish to
▸ be a kept citizen, humbled and dulled by
▸ having the state look after me.

▸ I want to take the calculated risk, to dream

▸ and to build, to fail and to succeed.
Entrepreneur's Credo
▸ I refuse to barter incentive for a dole; I
▸ prefer the challenges of life to the
▸ guaranteed existence; the thrill of
▸ fulfillment to the stale calm of Utopia.

▸ I will not trade my freedom for beneficence

▸ nor my dignity for a handout. 1 will never
▸ cower before any master nor bend to any
▸ threat.
Entrepreneur's Credo
▸ It is my heritage to stand erect, proud and
▸ unafraid; to think and act for myself, to
▸ enjoy the benefit of my creations and to face
▸ the world boldly and say:

▸ This, with God's help, I have done. All this

▸ is what it means to be an entrepreneur."

▸ Official Credo of
▸ American Entrepreneurs Association
▸ 1986
Alphabet of Entrepreneurship (A-Z)

▸ A- ability to organize resource

▸ B- bold to take calculated risk
▸ C creative and innovative
▸ D- demanding for quality result
▸ E- excited to compete
▸ F- finds opportunity in crisis
▸ G- goal oriented
▸
Alphabet of Entrepreneurship (A-Z)
▸ H- hardworking
▸ I-inquisitively in search for improvement
▸ J- jack of all trades
▸ K- keen for details
▸ L- legitimate
▸ M- mindful of the changes in the environment
▸ N- networker
▸ O- organized and an organizer
▸ P- passionate
▸ Q- questioning the status quo
Alphabet of Entrepreneurship (A-Z)
▸ R- resourceful
▸ S- success oriented
▸ T- time conscious.
▸ U- undivided focus
▸ v- visionary
▸ w- winning attitude
▸ X- xtremely smart
▸ Y- yearning to learn
▸ Z- zealously energetic
Rewards of Going into Business
▸ 1. Having Unlimited Opportunity to Make Money
▸ When you have your own business, you will
most certainly have unlimited potential to earn
money. How much money you earn depends on
the time and effort you put into your enterprise.
Successful entrepreneurs have earned their
wealth and prestige through hard work and by
having the right product for the right market at
the right time.
2.Being Your Own Boss
▸ As manager of your business, you make the decisions and
take full responsibility for these. The quality of these
decisions will translate into either gain or loss for your
business. Being your own boss means you are in control of
your future. You have a better grasp of what you want to
be.
▸ The best parts of being an entrepreneur is the complete
freedom . No more bosses to report to, or managers peering
over your shoulder .You can steer your ship any way that
makes sense for you as long as it's legal, and you can
develop a business model that's reasonably profitable.
3. Tapping your Creativity
A business usually starts out as an idea. You will have
the opportunity to harness this creativity and turn your
idea into products and processes. Although on the
surface business seems to be a dry pursuit geared
primarily toward making money, it can actually be a
profoundly creative endeavor that gives you space to
express your individuality and pursue activities related
to your personal values. Because you are the leader and
the prime decision maker, you can innovate to your
heart's content as long as you can make things work
financially.
 4. Overcoming Challenges and Finding Fulfillment

▸ Starting a business is by itself an

accomplishment. Running a business
tests an entrepreneur’ in securing and
managing resources. How well a
business turns out depends on the
owner’s ability to face challenges and
overcome difficulties.
5. Helping Others

▸ In the process of running a business,

an entrepreneur employs workers,
that can improve their lives. An
entrepreneur who succeeds and grows
also helps suppliers, sub-contractors,
dealers and other businesses
connected to him succeed .
6. Building an Entrepreneurial Legacy

▸ A business can be a lasting legacy to

the family. It can ensure
employment for some members of
the family. It can create an
enterprising culture than can be
handed down through the
generations
Risks of Going into Business or Entrepreneurship
▸ 1. Possibility of Failure

▸ There is always the possibility

of failure- a single wrong
business decision can bring a
business to bankruptcy.
2.Unpredictable Business Conditions

▸ A small business is vulnerable to sudden

changes in the business environment. In a
fast- paced industry, a small firm may not
have the financial capability or the
organizational capacity to respond adequately
to new opportunities and their concomitant
problems.
3. Long Hours of Work

▸ A prospective entrepreneur must

be ready to spend most if not all
his waking hours in the business.
Also, family time and personal
affairs may be sacrificed.
4. Unwanted or Unexpected Responsibilities

▸ The entrepreneur may

eventually find himself
saddled with management
responsibilities he did not
bargain for.
SELF ASSESSMENT QUESTIONS (SAQ)
▸ ACTIVITY #1
▸ 1. Why should you risk your resources in an
unpredictable business when you could hold a stable
job with permanent tenure and an assurance of a
regular monthly income without any risk? In other
words, why be an entrepreneur rather than an
employee? (20 words)
 Rubrics
▸ Rubrics
Criteria 4 Exemplary Exceeds 3 Excellent/Meets 2 Acceptable 1 Unacceptable Needs
ExpectationSuperior ExpectationGood ProgressingFair Improvement

Comprehensibility Very Much Very Comprehensible Main ideas are Not comprehensible at
Comprehensible comprehensible all

Content Coverage Fully developed Adequately developed Partially developed Minimally developed