ENTREPRENEURSHIP

& ORDINARY
SMALL BUSINESS
ACTIVITY
 ENTREPRENEURSHIP and the
ACTIVITIES OF ORDINARY SMALL
BUSINESSES Differ in the following
areas:
1. Motive in opening a business.
2. Perception of risk in the business.
3. Reactions to changes in the environment.
4. View on competition.
MOTIVE IN
OPENING A
BUSINESS
 ENTREPRENEUR ORD SMALL BUSINESS

- Starts a business venture based on - Opens a business with the primary goal
Entrepreneurial concepts & principles of making his/her source of livelihood.
and the aspiration to become
successful.

- Constantly lookout for new and fresh - The business becomes a major provider
ideas, which can be found in the of the family for their financial
business environment. requirements.
 ENTREPRENEUR ORD SMALL BUSINESS

- It continuously changes and evolves. - Operates with a basic motive of earning

profit.

- New and fresh ideas for the
entrepreneur lead to business
opportunities.
- Makes use of entrepreneurship as a
means to a happy and fruitful life.
- The level of profitability is sometimes
neglected.
- The profitability aspects and level are
two distinct important issues.
 PERCEPTION
OF RISK IN
THE BUSINESS.
 ENTREPRENEUR
- Takes and faces the business risk
squarely.
- Considers it inherent in the business
venture: Prepares the business for it,
and find ways to minimize its effects.
ORD SMALL BUSINESS
- Believes that the business risk is a
deterrent to the operation of the
business and must be voided.
 REACTION TO
CHANGES IN THE
ENVIRONMENT

ENTREPRENEUR
- Reacts positively to the changes in the
environment.
(Creative mechanisms for development
and growth in the entrepreneurial
activities).
- They outline alternative courses of
action.
ORD SMALL BUSINESS
- Remains passive and static to the
changes in the environment.
- Believes that changes in the
environment is not a plus factor to the
daily operations but rather a source of
negative sequences.
 VIEW
ON
COMPETITION

ENTREPRENEUR
- The presence of competition is a sign
of healthy economic environment.
ORD SMALL BUSINESS
- Views competition as an unhealthy
element in the business environment
and tries to avoid it.

- Competition will undoubtedly force - Very uncomfortable working in a

entrepreneurs to continuously improve competitive environment and strongly
their present products or services. discourages competition in the business
community.
ENTREPRENEURSHIP and the
ACTIVITIES OF ORDINARY SMALL
BUSINESSES Differ in the following
areas:
5. Vision for development and growth.
6. Horizon of business operation.
7. Sources of business funds.
 VISION FOR
DEVELOPMENT
AND GROWTH
 ENTREPRENEUR ORD SMALL BUSINESS

- Makes sure that the vision and - Relies upon chance or luck in
mission of his / her business is clear. maintaining the status quo of his / her
business.

- Manages the venture in such a way - Not so much concerned about his
that the operations will provide development and growth as long as
development and growth to the he / she is satisfied with its earnings.
venture.
 HORIZON
OF
BUSINESS
OPERATION
 ENTREPRENEUR ORD SMALL BUSINESS
- Thinks globally but acts locally. - Centered only on the local
- Primarily concerned with the major environment.
economics events in the local and - Does not intend to participate in the
global environment. global environment.

- Has a strong notion that the business - View of operating outside the local
will be going out to market. market is inconceivable.
- Has both local and global perspectives. - Expansion has never been an idea
worth entertaining.
 SOURCES
OF
BUSINESS FUNDS
 ENTREPRENEUR ORD SMALL BUSINESS
- Explores ways to generate the much- - Tends to limit the funding of his/her
needed funds from both internal and business enterprise to personal
external resources. resources.

- Strongly belives that the wealth that - Fully convinced that he / she is
the venture may create is more than pursuing the unprogressive type of
enough to compensate for the sourced business endeavor.
funds.
 MISCONCEPTIONS
ON
ENTREPRENEURSHIP
 1. ENTREPRENEURSHIP
applies only to
manufacturing businesses.
 It should be remembered that
MERCHANDISING and PROVIDING services are
also business venture.
There are exchanges of values in these
businesses but there are also risk. However,
creativity and innovation appear limited in
merchandising because there in NO
transformation in the appearance and content
of the product.
 In other words, in a merchandising
business - the appearance of the product does
not change from the time it is bought from the
manufacturer until it is finally sold to the
consumer.
The major merchandising activities
involved are BUYING & SELLING only.
 On the other hand, in a manufacturing
operation, the product passes through the
different stages of processing from raw
materials to finished goods. It is during the
processing period that CREATIVITY and
INNOVATION take place.
2. ENTREPRENEURSHIP
applies only to small
businesses.
 ENTREPRENEURSHIP PRINCIPLES: in
their strict sense, apply to small, medium and
big businesses.

Small business refers to business with

employees of not more than 20 employees.
 You will notice that many programs of the
government and NGO’S on entrepreneurship are
focused on the organization and development of
small businesses. These efforts have led to the belief
that entrepreneurship is about small businesses
only. This perception is basically wrong.
The concepts and principles of
entrepreneurship are applicable to all types of
businesses regardless of their sizes.
 When the business venture becomes big,
expands its operation or opens other branches
locally or abroad, the owner usually employs a
qualified manager to run the day-to-day
operations of the branches.
In so doing, owner may reliquish to the
manager the certain functions such as
Decision-making & Marketing.
 In effect, entrepreneurship then becomes
CORPORATE ENTREPRENEURSHIP, which is a
process that goes on inside an existing
business venture and may lead to new ones
and the development of new products and
services.
FRANCHISING and the TRANSITION of a
SOLE PROPRIETORSHIP to a corporation are good
examples of this case.
 3. ENTREPRENEURSHIP
applies mostly to persons with
good educational background
in business courses.
 Nobody is born an ENTREPRENEUR. To
become a successful entrepreneur, you must
know the basic concepts and principles of
entrepreneurship and apply them properly to
your chosen business.
The environment in which your business
operates also contributes to its success.
 Although business courses comes may help
you in the field of entrepreneurship, it does not,
however, provide an assurance that you will become
a dynamic entrepreneur. There are several forces
that significantly influence the success of a business
venture.
These forces in the market are sometimes
considered threats because they may lead to the
downfall of the business.
 The practice of entrepreneurship does not
even require any entrance examination in
business courses.
In reality, successful entrepreneurs come
from all walks of life and have different
educational backgrounds from different
colleges and university in the country.
 Studying in prominent colleges or
universities does not guarantee you of
becoming a successful entrepreneur. It
is your inner driving force that carries
you towards becoming a dynamic
entrepreneur.
4. ENTREPRENEURSHIP
applies only to a good
economy.
 An entrepreneur finds business opportunities
in both flourishing and distressed economies.
Entrepreneurship can exist in both good and bad
economies.
During a final crackdown, big businesses
usually adopt a conservative approach in utilizing
their resources.
They reduce their production output and hold on to
their cash. This will ultimately reduce employment
and congest the flow of money in the economy.
5. ENTREPRENEURSHIP
is simply opening a
small business.
 Entrepreneurship does not merely mean
opening a small business. This is simply that the first
step in actualizing the entrepreneurial venture.
The business have already passed through the
preliminary stages of scanning the environment and
preparation of the feasibility study and business
plan.
Entrepreneurship does not start and end with
opening a small business. It is a long, continuing
process.
 IMPORTANCE OF
ENTREPRENEURSHIP
 IMPORTANCE
TO THE
FILIPINO PEOPLE
 Entrepreneurship makes the following
contributions to the lives of the Filipinos:
- It provides guidelines in their wealth-
creating ventures.
- It helps improve their financial and social
life.
- It helps broaden their creativity.
- It helps make the lives happy, fruitful and
successful.
 IMPORTANCE
TO THE
LOCAL COMMUNITY
 Entrepreneurship, in one way or another,
makes the following contributions to the
local community:
- It provides employment to the community
- It creates new demand in the market
- It makes substantial contribution to the
raising and collection of taxes
- It provides facilitates the movement of the
factors of the production
- It creates new business opportunities
- It promotes a peaceful and loving
community
- It creates constructive competition
 IMPORTANCE
TO THE
PHILIPPINE ECONOMY
 Entrepreneurship makes the following
contributions to the Philippine Economy:
- It encourages competitiveness and
thereby challenges entrepreneurs to keep
improving their products and services
- It helps find an entrepreneurial niche in
the world market
- It helps hasten the economic recovery
process of the Philippine during financial
turnmoil or crackdown
- It facilitates the smooth flow of money in
the local market
- It assist the national government in its
desire to have favorable economic ratings
in the world market
 SOURCES OF
ENTREPRENEURSHIP
 Changes in the Environment
Technological discovery and
advancement
Government’s trust, programs and
policies
People’s interest
Past experience
CHANGES in the
ENVIRONMENT
 Entrepreneurial ideas arise from the
changes that happen in the external
environment with entrepreneurial implications.
Not everyone welcomes changes in the
external environment.
However, a person with an
entrepreneurial drive views these changes
positively. He / She determines what business
opportunities they may provide.
 The term EXTERNAL
ENVIRONMENT refers to the
physical environment, societal
environment, and industry
environment where the business
operates.
 PHYSICAL ENVIRONMENT
includes:
- climate
- natural resources
- wildlife
 SOCIETAL ENVIRONMENT
includes:
- economic forces
- sociocultural forces
- political forces
- technological environment
 INDUSTRY ENVIRONMENT
includes:
- government - customers
- competitors - creditors
- suppliers - employees
 TECHNOLOGICAL
Discovery and Advancement
 Discovery and advancement in the use of
technology are another good source of
entrepreneurial ideas and opportunities. Most people
welcome technological discoveries and
advancements but cannot identify or determine
entrepreneurial opportunities stemming from them.
On the other hand, a person with
entrepreneurial interest looks at the possibility of
business opportunities in any new discovery or
advancement of technology.
 GOVERNMENT’S
Trust, Programs & Policies
 The priorities, projects, programs, and
policies of the government are also good
sources of entrepreneurial ideas. The
government refers to the local government
(municipal, city or provincial ) or the national
government and its branches.
 The programs and agenda of the
Philippine government intuitively address the
needs of the Filipino people. There are also
instances when the government responds to
the call of international agencies or the world
market.
Whenever there are changes in the
policies and programs of the government, new
entrepreneurial ideas are likely born.
PEOPLE’S
Interest
 The interests, hobbies, and preferences
of people are a rich source of entrepreneurial
ideas.
For example: the increasing number of internet
cafe at present could be attributed to the strong
attachment of young people to computers. The
arise of amusement parks, rightsports, and
nature farms could be a response to the need of
people for fun and relaxation.
 PAST
Experience
 Past experiences and exposures
are also a good source of
entrepreneurial ideas. The expertise
and skills developed by a person who
has worked in a particular field may
lead to the opening of a related
business enterprise.
HAVE A NICE DAY!
Thank You .....