Entrepreneurship

is a
Wealth-Creating Venture

Presented by:
Nedylyn Dioneda 🖤
This feature sounds simple, but this
has been most misconstrued because
of the word wealth. We often hear
the old maxims "Health is Wealth" or
"Knowledge is Wealth."
However, this is not the concept of
wealth in entrepreneurship.
Ordinary small business people
equate wealth with the term profit.
In the parlance of accounting,
profit represents the excess income
or revenue from the cost and
expenses.
Entrepreneurship is operating within
the concept of Wealth creation rather
than profit generation.

Profit Wealth
Is more applicable in According to Random
the area of accounting Webster's Dictionary, it
as a way of measuring is the abundance of
the operating money, property, or
performance of a possession.
business.
The concept of abundance and not of
accounting profit, is the very essense of
Wealth in Entrepreneurial Endeavor.
As an entrepreneur, you should open
your own business as a wealth-creating
venture and not solely as an income-
generating venture.
An entrepreneur has a different
perception and outlook from an
ordinary business person.

An entrepreneur An ordinary
looks at his/her business person
regards his/her
own business as a small business
wealth-creating basically as a source
venture. of income.
Wealth is created when the benefits
derived by the owner in providing
goods and services to the customers
are abundant enough to cover the
costs incurred by the business. At the
same time, it provides personal
benefits to the owner, which in turn
improve his/her life.
The adoption of the wrong concept of the wealth
creation is the primarily reason why most of the
small business ventures in the Philippines do not
prosper.
In worst scenario, the owner takes the venture only
as a means to support the basic needs of the whole
family on a daily basis. The owner of the business
makes routine exchange of goods and services for a
certain price. He/She accepts any income generated
by the business.
This is not the real essense of entrepreneurship.
Wealth is created when the value of the
business has increased abundantly and
the life of its owner has improved
considerably. If not, then the business is
being managed and operated not within
the framework of entrepreneurship.
 Group Activity

• In a 1/4 sheet of paper

Differentiate the wealth
creating business and income
generating enterprise then
kindly give an examples of it.