ENTREPRENEURSHIP

AND ORDINARY
SMALL BUSINESS
Lesson 4
LET’S REVIEW

Discuss the need to have a correct understanding of the concept of

entrepreneurship.
 A clear understanding of entrepreneurial concepts and principles will define the
correct perspective of entrepreneurship so that the subject is easily facilitated.
LET’S REVIEW
What advantages will it provide to a person who is interested in becoming a
successful entrepreneur?
 The person will have strong foundations on the concepts and principles of
entrepreneurship.
 The person is equipped with necessary entrepreneurial tools needed in the
identification of entrepreneurial opportunities.
 The person has competitive advantage in making economic decisions
 The person is correctly guided in his or her entrepreneurial journey.
LET’S REVIEW

Distinguish between an entrepreneur and an ordinary businessperson.

 The ordinary businessperson and an entrepreneur both have their own business
and personally supervise them. The entrepreneur, however, is a strong advocate of
entrepreneurial concepts and principles.
Discuss the features and significance of the theories on entrepreneurship.
 A theory is a generalization that explains set of facts or phenomenon. The theories
of entrepreneurship will provide basis for the beliefs accepted and practiced by an
entrepreneur. It will enhance his or her knowledge.
LET’S REVIEW

Describe who determines whether the goods or services are valuable.

 The ultimate consumer or user of the product or services is the one who determines
whether the goods or services are valuable. Value, therefore, is measured from the
perspective of the consumer.
Differentiate how an entrepreneur and ordinary businessperson handle business
risk.
 An owner of an ordinary business finds way to avoid risk while an entrepreneur
faces risk but finds ways to reduce them.
LEARNING OUTCOMES
1. Distinguish between entrepreneurship
and ordinary small business activity
2. Determine the importance of knowing
the distinction.
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Entrepreneurship and ordinary small business

DIFFERENCE BETWEEN THE ACTIVITIES OF

THE ORDINARY SMALL BUSINESS AND
ENTREPRENEURSHIP

1. Motive in opening a business

2. Perception of risk in the business
3. Reactions to the changes in the environment
4. View on competition
5. Vision on development and growth
6. Horizon of business operation
7. Sources of business funds

MOTIVE IN OPENING A BUSINESS
ENTREPRENEURSHIP
• Start a business venture based on
entrepreneurial concepts and principles
and the aspiration to become successful
• Constantly on the lookout for new and
fresh ideas found in the business
environment.
9
ORDINARY SMALL BUSINESS
• Opens a business with the primary goal
of making it his or her source of
livelihood.
• Operates the business with a basic
motive of earning profit
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PERCEPTION OF RISK IN THE BUSINESS

ENTREPRENEURSHIP ORDINARY SMALL BUSINESS

• Entrepreneur takes and faces business • Owner believes that the risk is deterrent
risk squarely. to the operation of the business of the
business and must be avoided

REACTIONS TO CHANGES IN THE
ENVIRONMENT
ENTREPRENEURSHIP
• Entrepreneur reacts positively to the
changes in the environment.
• Entrepreneur considers changes in the
environment a creative mechanism for
development and growth in the
entrepreneurial activities.
11
ORDINARY SMALL BUSINESS
• Owner remains passive and static to the
changes in the environment where his or
her business operates.
• Owner believes that changes in the
environment is not a plus factor to the
daily operations but rather a source of
negative consequences.
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VIEW ON COMPETITION

ENTREPRENEURSHIP ORDINARY SMALL BUSINESS

• For entrepreneur, the presence of • Owner views competition as an
competition is a sign of a healthy unhealthy element in the business
economic environment. environment and tried to avoid it
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VISION FOR DEVELOPMENT AND

GROWTH
ENTREPRENEURSHIP ORDINARY SMALL BUSINESS
• The entrepreneur usually outline the • Owner relies upon the chance or luck in
course of his or her entrepreneurial maintaining the status quo of his or her
venture in term of short-term, medium- business.
term, and long-term plans of action.
• The vision and mission of the business
is clear
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HORIZON OF BUSINESS OPERATION

ENTREPRENEURSHIP ORDINARY SMALL BUSINESS

• Entrepreneur thinks globally but acts • Owner is centered only on the local
locally. environment

SOURCES OF BUSINESS FUNDS
ENTREPRENEURSHIP
• Entrepreneur finds that the proposed
business endeavor is a wealth-creating
venture, he or she explores ways to
generate the much-needed funds from
both internal and external resources.
15
ORDINARY SMALL BUSINESS
• Owner tends to limit the funding of his
or her business enterprise to personal
resources.
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DIFFERENTIATE AN ENTREPRENEUR FROM AN ORDINARY
SMALL BUSINESS IN THE FOLLOWING AREAS:

1. Motive or basis in opening a business

 An entrepreneur opens a business on the basis of the business opportunity that will
provide wealth. An owner of ordinary small business opens the business for profit.

2. Perception of risk in the business

 An entrepreneur treats business risk as inherent in the endeavor and finds ways to
reduce its effects. An owner of ordinary small business avoids the risks and finds
no opportunities form the threats the risks pose
3. Vision for development and growth
 An entrepreneur, in most instances, defines the course of the business in short-
term, long-term, or medium-term. All business activities have a common
denominator and that is development and growth. An owner of an ordinary small
business relies heavily on chance or adopts the attitude of “by accident”. In other
words development and growth happen by accident.
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THANK YOU!
Presentation title 18

CLOSING PRAYER
Leader: Our help is in the name of the Lord.
Response: Who made Heaven and Earth.
Leader: Let us pray.
All: God, the desire of every human heart, you moved Saint
Augustine to seek restlessly for truth and peace. Touch our
hearts with his burning desire for wisdom, for the word made
flesh. We ask this through Christ our Lord. Amen.
Leader: St. Augustine.
All: Pray for us.