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HEllo!
everyone
 Module 2
What is
entrepreneurship?
Is there such a thing
as a ‘natural-born
entrepreneur’?
 Is there such a thing as a
‘natural-born
entrepreneur’?
Accordingly, there is not. Specific techniques
and habits must be practiced
and developed by all would-be
entrepreneurs. Aside from business
competencies, entrepreneurs need
interpersonal and self-leadership skills too;
however, these are often overlooked.
Entrepreneurial behavior‟ can be learned
and developed
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Is there such a thing as a ‘natural-

born entrepreneur’?
The question is not who entrepreneurs are,
but what they do, and more
important than business skills can be other
competencies that provide a foundation for
those business skills.
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Three levels of competencies,

which all entrepreneurs need:

1. Personal competencies – These are

your abilities to ground yourself so that
you are secure, and self assured in
whatever situation you may find yourself.
Ex. creativity, determination, integrity, self-
criticism.
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Three levels of competencies,

which all entrepreneurs need:

2. Interpersonal competencies – These are your

ability to lead, influence, communicate,
supervise, negotiate, and control people at all
levels. It is the ability to get along with people
and motivate people to perform jobs.
Entrepreneurs must effectively manage people.
Ex. communication, engagement, delegation
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Three levels of competencies,

which all entrepreneurs need:

3. Business competencies – These are set of

abilities and knowledge that sets a company
apart from its competitors It also refers to the
key characteristics that successful
entrepreneurs should have to be successful
Ex. business vision, financial management,
networking
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Entrepreneurial Process

It is important to formulate a strategy, which

should include an articulation of a plan and how
this is going to be implemented. This
entrepreneurial discipline is often referred to as
the entrepreneurial process, which involves
several stages from the awareness of an
opportunity to the realization of a business idea.
The steps include the following:
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Discovery
– refers to the recognition of a business
idea or the detection of opportunities that
could make money for the entrepreneur.
Development of concept
– gives more details on how the general
business idea can be realized
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Organizing resources – Describes the
process of identifying, sourcing, and
financing human, non-human and other
resources needed for the conduct of
business.
Implementation – The process of
carrying out the business plan. It covers
several activities, including the
management of human, physical,
technological, and financial business of
the business
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Reaping the returns

– pertains to the strategies related to the
expansion of the business firm. I t also
covers mechanisms for addressing
conditions in the business environment
that may affect the future of the firm.
Characteristics of an
Entrepreneur
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Entrepreneurial Traits and Creation of

value added

Level of education
–– Studies have shown that entrepreneurs
need some formal education to be able to seize
the opportunities presented by inventions,
innovations, and other technological
developments.
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Entrepreneurial Traits and Creation

of value added

Employment Status
– Individuals who become entrepreneurs
in developed countries are usually former
employees of companies in the formal
sector. The choice of pursuing
entrepreneurship can be viewed as a step
in the entrepreneur’s professional
development.
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Entrepreneurial Traits and Creation of
value added

Entrepreneur’s wealth
– the wealth of the entrepreneur is also an
important factor. Usually, megaentrepreneurs
source their funds from their own wealth and
from their families. Some generate capital for
their business from the wealth they have
accumulated from their past employment. They
can also borrow money from their wealthy
parents.
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Entrepreneurial Traits and Creation

of value added

Risk appetite
– Important factor in undertaking any
business venture. Risks are associated with
uncertainties in business operations. These
uncertainties can threaten the survival and
stability of a business enterprise. Usually,
entrepreneurs are risk-takers.
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Entrepreneurial traits and

Entrepreneurial Intentions
Internal Factors – Include mainly the qualities
of individuals such as:
a. Demographics
b. Personal Traits
c. Psychological characteristics
d. Individuals skills
e. Prior knowledge
f. Social Ties
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Entrepreneurial traits and

Entrepreneurial Intentions
External Factor
a. Environmental support
b. Environmental influence
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Characteristics of Filipino
Entrepreneurs

1. In terms of Gender
2. In terms of age
3. In terms of Educational
Attainment
 Characteristics of
Filipino Entrepreneurs
Majority of those engaged in early
stage entrepreneurial activities in the
Philippines are in consumer services
including retail, food, personal beauty
care, appliance and electronic repair,
cleaning services, and laundry
services.
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Entrepreneurial
Decision Making
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Entrepreneurial Decision Making

Critical Thinking – refers to thesystematic

and rational way of providing an answer to a
question. It also explains what is going on.
In businesses, a critical thinking is useful in
explaining how a firm can survive and
remain stable. Many tools in business
analysis make use of analytical thinking. For
example, SWOT (Strengths, weaknesses,
opportunities, and threats) analysis
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Entrepreneurial Decision
Making

Creative Thinking – refers to thought

processes that bring about the
discovery of new ideas. Unlike critical
thinking, it does not follow a systematic or
analytical process since it looks at things
from different perspectives. Sometimes,
creative ideas start from a dream, an insight,
or from mere observation.
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Entrepreneurial Decision
Making

Strategic thinking – involves thought

processes that assess current
situation that can be useful in the
formulation of plans. It is like critical thinking
since it uses an orderly and logical system in
its assessment. But is also resembles
creative thinking in its growth and future
orientation.
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Risks, Cognitive
Adaptability and
Entrepreneurial
Decisions
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1. Risks – described as uncertain situations

and developments that can increase the
probability of loss or business failure.

✓ Internal risks – dangers coming from the

management of resources of a business
enterprise.
✓ External Risks – Threats coming from
various environments outside the business firm.
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Risk Management – process of identifying,

assessing, and responding to these risks.

3. Cognitive Adaptability – refers to the

ability of individuals to be involved in
the process of producing several ways of
decision-making based on the identification and
management of changes in their environment. It
requires qualities of flexibility, dynamism, and
self-control on the part of the entrepreneur
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Thanks for listening !!!

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