Overview of Entrepreneurship

At the end of the lesson, you are expected to:

1.Discuss the relevance of entrepreneurship in general,

including its economic importance;
2.Define who is an entrepreneur;
3.Explain the key concepts of common and core
competencies in entrepreneurship; and
4.Explore opportunities for entrepreneurship as a
career.
What is Entrepreneurship?
• Entrepreneurship is a proactive process of
developing a business venture to make a
profit.
• An important driver of economic growth
and innovation.
 Here are the societal and
economic benefits of
entrepreneurship:
1.Entrepreneurship produces more jobs that equate
to an increase in national income.

2.Entrepreneurship amplifies economic activities of different

sectors of society.

3.Entrepreneurship introduces new and innovative products and services.

4.Entrepreneurship improves people’s living standards.

5.Entrepreneurship reduces social conflicts and political unrest.

6.Entrepreneurship elicits economic independence and capital formation.

 Who is an entrepreneur?
The word “entrepreneur” comes from the French
word entreprendre which means “to undertake.”
An entrepreneur is a unique individual who has the
innate ability and extraordinary dedication to
establish and manage a business, acknowledging
all the risks and reaping its rewards.
TYPES OF ENTREPRENEUR:

• Megaentrepreneurs – Individuals who

are willing to absorb huge risks of using
enormous amount of capital in their
business ventures.

• Microentrepreneurs – Individuals who are

engaged in micro or small businesses as an
alternative formal environment.
Here is the list of the most common small businesses in the Philippines.
• Sari-sari store
• Rice retailing
• Food cart business
• Printing business
• Buy-and-sell business
• Street food business
• Flea market business or
tiangge
• Online selling business
• Cellphone loading business
• Laundry and dry cleaning
business
• Hair styling and make up
business
• Video and photography
business
• Tutorial business
• Direct selling business
• Car wash and car care
business
• Water station and LPG
business
 New terms are coined to suit an
entrepreneur’s field or expertise.
IMPORTANT TERMS:
• technopreneur - is an entrepreneur who puts technology
at the core of his or her business model.
• social entrepreneur – the one who takes advantage of
the country’s social problems and turn them to profitable
institutions with the intention of helping the disadvantaged
community rather than making a profit.
 According to Action Coach,
there Five levels of
Entrepreneurial development.
 The self-employed
 The manager
 The leader
 The investor
 The true entrepreneur
1.The self-employed

The first level pertains to self-employed persons who desire to have

greater control over their lives, careers, and destinies by independently
braving their own path into business. 
 2.The manager
The second level, in contrast to the first mindset, has a greater position
to succeed as an entrepreneur because of the belief that business is all
about managing people.

Managers who become leaders succeed because they accept the

challenge and responsibility of ensuring that others under their wings
also succeed and flourish. By getting the most out of employees,
managers themselves are able to delegate aspects of their business to
others and set higher goals.
3.The leader
The third level relates to entrepreneurs who have become an
owner or leader of a business with a well-established
organization.

This  entrepreneur enjoys remarkable benefits by knowing

how to step aside and let the business – and those employees
working in it – operate as a profit center that is not reliant
upon the owner’s constant hands-on participation.
4.The investor
The fourth level is all about entrepreneurs who are
investing and managing their money to produce more
money and to elevate the business. Franchising is one of
the key tools of those who are in this level of
entrepreneurial mindset.
5.The true entrepreneur
The fifth and last level pertains to an entrepreneur who turns
goals and dreams into reality and who earns through
extensive passive income. These people profit in all situations
and add to their wealth by acquiring more profit centers,
more paper assets, and more entrepreneurial power.
The true entrepreneur uses a four-step process of
thinking -starting with :

1.idealization- entrepreneurs dream enormously and

desire to build an ideal environment.

2.visualization- entrepreneurs start to create plans to

make the dream reality.

3.verbalization- involves sharing their ideas with other

people,knowing that their vision becomes a reality.
4.Materialization- it is when that dream becomes real
and tangible.
Common and core competencies in
Entrepreneurship
1. Proactive- Entrepreneurs are reactive rather
than passive.They address issues,problems and
challenges before they come rather than when
they already happened.
 2. Agents of change- Entrepreneurs are innovation
champions. They see opportunities in hopeless and
complex situations.They are always enthused to
improve and develop new products and services and
introduce them to the market.
3.Risk takers-.By taking risks,entrepreneurs
do not just grab opportunities left and
right;they have to take into consideration
the potential various threats they may
encounter.
4.Have a sharp eye for opportunities
Entrepreneurs have a talent for recognizing an
opportunity even by using macrolevel data.They
know how to assess the net cause and effect of
an opportunity and decide intelligently if a
venture should be considered or not.
5.Sociable – Soft skills are one of the most important
competencies of entrepreneurs as these establish the
relationship with the most important assets of the
company- its people and its customers.
6.Networkers- A networker knows the key people to
connect with. Successful entrepreneurs gain trust of
their valuable network and maintain a long-lasting
relationship with them.
 7.Decisive- Entrepreneurs always have a decision
about their business.They do not settle for gray areas
or unclear solutions.They make sure that all aspects
of their business have clear objectives and strategies.
8.Balanced- The minds of
entrepreneurs should have a
balance between the analytical and
creative side.
 9.Innovative- The minds of entrepreneurs are rich
with big ideas that can add value to their existing
business.They do not stop improving and thinking of
new and worthwhile ideas for their business.
Here are the core traits that entrepreneurs should
develop in managing and running a business:

• 1.Leaders
Successful entrepreneurs always have the heart
of a leader.To be successful leaders,they must
be a source of inspiration for their employees.
 • 2.Communicators
Entrepreneurs know how to use all forms of
communication to effectively share ideas and
address certain concerns with their costumers
or employees.
 • 3.Specialists
Entrepreneurs are experts in their chosen
business.
 • 4.Problem solvers
Entrepreneurs possess critical thinking skills and
look at problems as challenges or puzzles that
thay need to solve.
 Once the business is established, the business
owner,the entrepreneur can choose to expand
and explore franchising.
Franchising – is a system used by a company that
grants others the right and license to market a
product or service under the franchisor’s trade
names, trademarks, service marks and method of
doing business.
Franchisor- the owner of the business.
Franchisee- an individual who chooses to invest in a
franchise to become a business owner.
acquisition- buying another similar business or
a new business.

Intrapreneurship- managing a startup business

in an established business.