CHAPTER 1 – UNDERSTANDING

ENTREPRENEURSHIP
WEEK 1 - 2
CONTENT STANDARDS LEARNING
COMPETENCIES
The learner demonstrates
understanding of key
 Discuss the relevance of the course
concepts, underlying
principles, and core  Explore job opportunities for
competencies in Entrepreneurship as a career
Entrepreneurship.
WHAT COMES TO
YOUR MIND…

•When you hear the words entrepreneur

and entrepreneurship?

•Do you imagine yourself becoming an

entrepreneur and managing your own
business in the future?
10 SUCCESSFUL
ENTREPRENEURS WHO ARE
COLLEGE DROPOUT
o BILL GATES – Microsoft
o MICHAEL DELL – Dell Computers
o STEVE JOBS – Apple founder
o MARK ZUCKERBERG – Facebook
o DANIEL EK – Spotify
o TRAVIS KALANICK – UBER
o EVAN SPIEGAL – Snapchat
o RALPH LAUREN – Ralph Lauren Corp.
o HENRY FORD – Ford Motors
o WALT DISNEY – Walt Disney
  Henry Sy (Shoe Mart)
 Tony Tan Caktiong (Jollibee
The Top 5 Most Foods)
Successful  Socorro Ramos (National Book
Entrepreneurs in the Store)
Philippines  John Gokongwei Jr. (J.G.
Holdings)
 Mariano Que (Mercury Drug)
  Henry Sy (Shoe Mart)
 Net Worth: US$19 billion

Shortly after, World War II broke out and ruined

the family business. Sy, on the other hand,
continued to pursue his entrepreneurial interests
The Top 5 Most by selling worn military combat boots and other
Successful items to American soldiers. This is where the
name “Shoe Mart” originates: it was Manila’s
Entrepreneurs in the first shoe store at the time. Despite being unable
to find vendors that could make the shoes he
Philippines wanted, Sy persisted.

Sy, who died in 2019 at the age of 94, was

survived by his family. Sy’s legacy lives on today
in his many SM malls and other acquired
businesses. As a result, he was one of the world’s
wealthiest men.
  John Gokongwei Jr. (J.G. Holdings)
 Net Worth: USD$4.8 billion.

When his father died, the family fortune

evaporated, and he had to support his family by
peddling goods from his bicycle in the streets of
Cebu. He then began to trade by boat and truck
The Top 5 Most until he began importing from the United States.
Successful
Seeing that low trade margins would always limit
Entrepreneurs in the his income, he switched focus to manufacturing.
Philippines He borrowed PHP 500,000 from Chinabank to
launch a maize milling company that is now
known as Universal Corn Products.

His family is now one of the most successful

Filipino business families and owns the Robina
Land Corporation, which owns Robinsons
Supermarkets and Department Stores, as well as
the commercial airline Cebu Pacific.
  Socorro Ramos (National Book Store)
 Net Worth: USD$3.1 billion

Socorro Ramos began her career in

publishing and retail as a salesgirl in a
The Top 5 Most bookshop. With a capital of PHP200, she
Successful and her husband launched National Book
Store in Escolta at the age of 19, selling
Entrepreneurs in the books and school supplies to children.
Philippines
The National Book Store now has around
3,000 employees. At the age of 98, Socorro
Ramos is worth an estimated USD3.1
billion, making her one of the country’s
richest people.
  Tony Tan Caktiong (Jollibee Foods)
 Net Worth: USD$1.2 billion

He bought an ice cream shop in 1975, but

owing to low sales, he decided to add other
items such as fried chicken, fries, and burgers.
The Top 5 Most Customers came to the store to buy his
products after word spread in his area.
Successful
Caktiong was able to expand across the
Entrepreneurs in the country after embracing the fast-food
Philippines business model, growing his humble
restaurant into one of the Philippines’ most
successful businesses.
Furthermore, by establishing a franchise, he
has been able to break into the international
market. With over 2,500 outlets in the
Philippines and locations in the United States,
China, Saudi Arabia, Vietnam, Singapore,
Brunei and the UK, Jollibee is a fast-food giant.
  Mariano Que (Mercury Drug)
 Net Worth: USD$1.1 billion

Following WWII, Mariano Que discovered

The Top 5 Most a commercial opportunity. Que, who had
worked at a local drugstore before the
Successful war, opened his own drugstore when he
Entrepreneurs in the noticed the demand for sulfa, a type of
antibiotic used to treat bacterial illnesses.
Philippines
He began selling good-quality sulfa for a
low price. As a result, he was able to
expand his clientele. In 1945, he founded
the Mercury Drug chain of pharmacies.
 The outbreak of COVID-19 pandemic led
to closure of various business establishments that
resulted to job termination of many employees.
Plenty of workers became unemployed
I. Introduction and waited for the assistance from the
government.
However, there were also plenty of people
including the terminated employees who were
able to look for their livelihood during the
pandemic.
Most of these people were able to sustain
their needs because of their entrepreneurial mind.
 Thus, to be able to survive and to keep pace with
this hard and challenging world while facing speed of
technological advancements, unexplored doors of various
new business opportunities must be opened – and that is
I. Introduction the role of an entrepreneur.

Entrepreneurship, being known to humankind as one of

the most powerful economic force, empowers individuals
to seek opportunity where others find difficult problems.

Entrepreneurship is the symbol of achievement and

business tenacity. It is a fundamental source of change in
all facets of society and a key to economic development.
II. Objectives
• Understand the relevance of
entrepreneurship (TLE_ICTAN11/12PC-Ia-
1);
• Understand the concept of entrepreneur
and entrepreneurship
(TLE_ICTAN11/12PC-Ia-1);
• Identify the factors affecting
entrepreneurship (TLE_ICTAN11/12PC-Ia-
1); and
• Explain the core competencies in
entrepreneurship (TLE_ICTAN11/12PC-Ia-
1)
 • ENTREPRENEUR - Derived from the French word, entreprendre, which
means “to undertake” (Pahuja, 2015). This refers to an individual or
groups of individuals that act independently, or as part of a corporate
system, that create new organizations or initiate renewal or innovation
within an existing one.
In other book, it refers to those innovators who “undertake” the risk of
new enterprises and generate new ideas to create unique and potentially
profitable solutions to modern-day problems.
• ENTREPRENEURSHIP - An economic activity of an entrepreneur who is

III. Vocabulary always in search of something new to exploit new ideas into gainful
opportunities by accepting the risk and uncertainty of the enterprise.

List It covers the occurrence of organizational innovation or creation of new

products that occurs inside or outside the existing organization (Cuervo,
et al., n.d.).
• ENTERPRISE - A business or an establishment created by an
entrepreneur.
• INTRAPRENEUR - these are usually employees within a company who
are assigned a special idea or project and are instructed to develop the
project like an entrepreneur would.
• INTRAPRENEURSHIP - Activities that occurs within a firm or large
organization which includes corporate venturing, when large entities spin
off organizations.
 Direction: Carefully read the statement

IV. Pre-Test below. Place a T on the line if you think the

statement is TRUE and place an F on the line
if the statement is FALSE.
___ 1. Entrepreneurship is a complex
phenomenon which is influenced by the
interplay of a wide variety of factors that
include personality, internal and
environmental factors.
___ 2. Entrepreneurship involves creation
and use of innovative ideas, maximization of
output from given resources, and
development of managerial skills.
___ 3. An entrepreneur is a high risk-taker.
___ 4. To be an entrepreneur, one needs
money only.
___ 5. Entrepreneurship, like leaders, are
born, not made.
 Direction: Carefully read the statement

IV. Pre-Test below. Place a T on the line if you think the

statement is TRUE and place an F on the line
if the statement is FALSE.
T
___ 1. Entrepreneurship is a complex
phenomenon which is influenced by the
interplay of a wide variety of factors that
include personality, internal and
environmental
T factors.
___ 2. Entrepreneurship involves creation
and use of innovative ideas, maximization of
output from given resources, and
development
F of managerial skills.
___
F 3. An entrepreneur is a high risk-taker.
___ 4. To be an entrepreneur, one needs
F
money only.
___ 5. Entrepreneurship, like leaders, are
born, not made.
NATURE AND
CONCEPTS
• ENTREPRENEURS
Entrepreneurs are the person who
undertake entrepreneurial activities;
recognizes an economic need, thinks
of a business solution, undertake to
assemble the required resources,
and assumes the risk of either failing
or succeeding.
Entrepreneurs are innovators, willing
to take risks and generate new ideas
to create unique and potentially
profitable solutions to modern-day
problems.
• ENTREPRENEURSHIP
Entrepreneurship is the process of creating
something new, be it a product or a service,
and assuming the risks and rewards.
 It also refers to economic activity of a person
or an organization who starts, manages and
assumes the risk of business enterprise.
 Entrepreneurship ranges in scale from solo
projects (even involving the part-time
entrepreneur) to major undertakings that
create many job opportunities (De Guzman,
2018).
Entrepreneurship employs what Schumpeter
called the “gale of creative destruction” to
replace wholly or partly inferior innovation
across markets and industries. This
destruction simultaneously creates new
products and new business models (De
Guzman, 2018).
 The three primary reasons that people become
entrepreneurs and start their own firms are:

1. Desire to be their own boss

Why Become an
Entrepreneur? 2. Desire to pursue their own ideas/ Gain Self-
satisfaction

3. Financial rewards
REWARDS OF ENTREPRENEURSHIP
FINANCIAL REWARD (MAKE MONEY)
You give yourself the chance to
be financially independent. You
make the amount of money you
work for. In entrepreneurship,
most of the time, the money
even works for you.
BE YOUR OWN BOSS
Who wouldn’t want to be the
boss? It is easy to be
overwhelmed with all the
benefits of being your own boss.
You just have to be mindful that
with the privileges also come the
responsibilities.
GAIN SELF-SATISFACTION
Entrepreneurship can be very
rewarding, both financially (make
money) and personally (own boss).
Self-satisfaction may come in a lot of
forms, be it through the profits
gained, through helping employees
earn money, through serving the
community, or through simply seeing
an opportunity turn into reality via
entrepreneurial actions.
 1. It is an art of correct
practices.
2. It is a wealth-creating
venture.
SALIENT FEATURES OF
ENTREPRENEURSHIP
3. It provides valuable goods
and services.
4. It entails opening and
managing the self-owned
enterprises.
5. It is a risk-taking venture.
 Entrepreneurship is an art and not a science. It is not
governed by fixed and absolute rules, whereas, science is.

As an art, entrepreneurship is dynamic, when economic

activity changes, the political, social and entrepreneurial
activities will eventually change.
1.
ENTREPRENEURS As an art, it is closely related to creativity. There is a
HIP IS AN ART OF constant change or evolution that contributes towards the
enhancement of the enterprise.
CORRECT
PRACTICES This aspects differentiates an entrepreneur from an
ordinary small businessperson. An entrepreneur
transforms feasible new ideas into an entrepreneurial
venture, while an ordinary small business person only
builds upon existing ideas to gain immediate earnings from
his/her business.
 In most instances, ordinary small businessperson equate
wealth with the term profit. In accounting, profit
represents the excess income or revenue from the cost
and expenses.

Entrepreneurship, however, is operating within the

2. concept of wealth creation rather than profit generation.
ENTREPRENEURS
HIP IS A WEALTH- Wealth is defined as the abundance of money, property or
possession. The concept of abundance and not accounting
CREATING profit, is the very essence of wealth in entrepreneurial
VENTURE endeavor.

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.
 The owner of the business, in most instances, is engaged in
the sale of goods and services. However, the mere act of
selling goods or providing services does not make a person
perform within the concept of entrepreneurship.

3. Entrepreneurship creates economic wealth by providing

goods and services to the consumers. These goods and
ENTREPRENEURS services must have a value in order to create wealth.
Otherwise they become wasted.
HIP PROVIDES
VALUABLE One essential principle in entrepreneurship then is “not to
GOODS AND sell waste to consumers but only valuable goods and
services”.
SERVICES
Valuable goods and services should highly satisfy the
target buyers in terms of quality and price. The
entrepreneur convinces the consumers that they gain
more benefits that what they pay for the goods and
services.
 This feature highlights two important elements:
(1) the concept of opening a self-owned
enterprise and (2) the concept of managing it.
4.
ENTREPRENEURS To be within the concept of entrepreneurship,
HIP ENTAILS the business must be opened and managed by
the owner.
OPENING AND
MANAGING SELF-
A business is considered a self-owned when the
OWNED person managing its daily activities is also its
ENTERPRISE owner.

Intrapreneurship – business is managed by

others for the benefits of the owners.
 Risk is inherent in an entrepreneurial venture.

The approach in handling business risks

differentiates an entrepreneur from an ordinary
5. businessperson.
ENTREPRENEURS
HIP IS A RISK- The risk in entrepreneurship is called business
risk.
TAKING VENTURE
An entrepreneur should face business risks
intelligently. He/she cannot eliminate something
ingrained in entrepreneurship instead he/she
must find ways to minimize the effects of risks.
ENTREPRENEURS
HIP AND
ORDINARY SMALL
BUSINESS
ACTIVITY
NATURE ■ Entrepreneurship is different from the
activities of small businesses.
AND ■ Entrepreneurship and the activities of
ordinary small businesses differ in the
CONCEPT… following areas:
– Motive in opening a business
– Perception of risk in the business
– Reactions to changes in the
environment
– View on competition
– Vision for development and growth
– Horizon of business operation
– Sources of business funds
 ■ An entrepreneur starts a business venture based
on entrepreneurial concepts and principles and
1. MOTIVE the aspirations to become successful. He/she is
constantly on the lookout for new and fresh

IN
ideas which can be found in the business
environment.

OPENING A ■ An owner of an ordinary small business opens a

BUSINESS
business within the primary goal of making it
his/her source of livelihood. The business
becomes the major provider od the family for
their financial requirements.
 ■ The entrepreneur takes and faces the
2. business risk squarely. He/she considers it
inherent in the business venture, prepare
PERCEPTIO the business for it, and finds ways to
minimize its effects.
N OF RISK
IN THE ■ The owner of an ordinary small business,
on the other hand, believes that the
BUSINESS business risk is a limiting to the operation
of the business and must be avoided.
 ■ The entrepreneur reacts positively to the
changes in the environment as it brings
3. REACTIONS new ideas for entrepreneurial opportunities.

TO CHANGES
■ The owner of ordinary business, on the
IN THE other hand, remains passive and static to
ENVIRONMEN changes in the environment where his
business operates. He usually believes that
T change in the environment is not a plus
factor to the daily operations but rather a
source of negative consequences.
 ■ For the entrepreneur the presence of
competition is a sign of a healthy economic
environment. Competition will undoubtedly
force entrepreneurs to continuously improve
4. VIEW ON their present products or services and be
creative in their endeavor.

COMPETITIO
N
■ The owner of ordinary small business, however,
views competition as an unhealthy element in
the business environment and tries to avoid it.
He is uncomfortable working in a competitive
environment and strongly discourages
competition in the business community.
 ■ The entrepreneur usually outlines the
course of his entrepreneurial venture in
terms of short-term, medium-term, and
long-term plans of actions. He makes sure
5. VISION FOR that the mission and vision of his business
is clear.
DEVELOPMEN
T AND ■ The owner of ordinary small business on
GROWTH the other hand, relies upon chance or luck
in maintain the status quo of his business.
He is not much concerned about its
development and growth as long as he is
satisfied with its earnings.
6. ■ An entrepreneur thinks globally but acts locally. He is
primarily concerned with the major economic events not

HORIZON only in the local environment but also in the global

business market. The entrepreneur has a strong notion
that the business venture will be going out of the

OF local market and will soon face healthy competition

in the international market. The entrepreneur has
both local and global perspective.

BUSINESS ■ The owner of ordinary small business, meanwhile, is

OPERATIO centered only on the local environment. He does not

intend to participate in the global environment. In other
words, expansion has never been an idea worth

N entertaining for the owner of ordinary small business.

7. SOURCES OF
BUSINESS FUNDS
■ When the entrepreneur finds that the proposed
business endeavor is a wealth-creating venture, he
explores ways to generate the much-needed funds
both internal and external sources.

■ On the contrary, the owner of an ordinary small

business tends to limit the funding of his business
enterprise to personal sources. Loans from external
sources can be a risky undertaking for him.
 In Summary…
… knowing the differences between an entrepreneur and an
owner of ordinary small business will help you assess
yourself, if you are an entrepreneur or a mere owner of
ordinary small business.
MISCONCEPTIONS ON
ENTREPRENEURSHIP
1.
It is a misconception that
ENTREPRENEURSH entrepreneurship is only applicable to
IP APPLIES ONLY manufacturing but not to
TO merchandising services.
MANUFACTURING
BUSINESS
It should be remembered that
merchandising and providing services
are also business ventures.

There are exchanges of values in these

businesses but there are also risks.
2. ENTREPRENEURSHIP
APPLIES ONLY TO
SMALL BUSINESSES

■ Entrepreneurial concepts and principles do not

make any distinction as to the size of the
business venture.

■ The amount of the capital does not serve as a

reckoning ground for classifying whether the
venture is operating within the concept of
entrepreneurship or ordinary small business.

■ The concepts and principles of entrepreneurship

are applicable to all types of business regardless
of their size.
3. ENTREPRENEURSHIP APPLIES MOSTLY
TO PERSONS WITH GOOD EDUCATIONAL
BACKGROUND IN BUSINESS COURSES

■ No body 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.

■ Although business courses may help you in the field of entrepreneurship,

it does not however, provide an assurance that you will become a
dynamic entrepreneur.

■ In reality, successful entrepreneurs come from all walks of life and have
different educational backgrounds. Studying in prominent colleges or
universities does not even guarantee you of becoming a successful
entrepreneur. It is your inner driving force that carries you towards
becoming a dynamic entrepreneur.
 ■ An entrepreneur finds business
opportunities in both flourishing and
distressed economies.
■ During a financial crackdown, big
businesses usually adopt to conservative
approach in utilizing their resources. They
4. reduce their production output and hold on
ENTREPRENEURSHI to their cash. This will eventually reduce
employment and congest the flow of money
P APPLIES ONLY TO in the economy.
A GOOD ECONOMY ■ While big businesses are contracting their
production output during such an event,
small business, on the other hand, increase
their output. Even during financial
crackdown, new ideas can be created and
new business opportunities can be
identified.
5. ENTRERENEURSHIP IS
SIMPLY OPENING A SMALL
BUSINESS
■ Entrepreneurship does not merely mean
opening a small business. This is simply the
first step in actualizing the entrepreneurial
venture.

■ Entrepreneurship does not start and end with

opening a small business. It is a long,
continuing process.
 Four Primary
Characteristics of
Successful Entrepreneurs

1-43
• PASSION FOR THE BUSINESS
• The number one characteristic shared
by successful entrepreneurs is a
passion for the business.
• This passion typically stems from the
entrepreneur’s belief that the business
will positively influence people’s lives.
• PRODUCT/CUSTOMER FOCUS
• A second defining characteristic of
successful entrepreneurs is
product/customer focus.
• An entrepreneur’s keen focus on
products and customers typically stems
from the fact that most entrepreneurs
are, at heart, craftspeople.
1-
44
 • TENACITY DESPITE FAILURE
• Because entrepreneurs are
typically trying something new,
the failure rate is naturally high.
• A defining characteristic for
successful entrepreneurs’ is their
ability to persevere through
setbacks and failures.
• EXECUTION INTELLIGENCE
1-
45
• The ability to fashion a solid
business idea into a viable
business is a key characteristic
of successful entrepreneurs.
Risks of Entrepreneurship
• MYTH: ENTREPRENEURS ARE
GAMBLERS
• Most entrepreneurs are moderate risk
takers.
• The idea that entrepreneurs are gamblers
originates from two sources:
• Entrepreneurs typically have jobs that
are less structured, and so they face a
more uncertain set of possibilities
than people in traditional jobs.
• Many entrepreneurs have a strong
need to achieve and set challenging
goals, a behavior that is often equated
with risk taking.
1-46
 • FAILURE
• You gain the most in the success of the enterprise
but if you fail, you also have the most to lose in
terms of investments and social stature, among
others.
• Can be minimized if you calculate your

Risks Of risks, control them, and plan accordingly.

• LONG HOURS OF HARD WORK

Entrepreneurship • Entrepreneurship takes time and work. Unlike

employees, entrepreneur has no regular hours of
work but tends to put in more hours, especially
during start-up.
• UNWANTED REPONSIBILITIES
• Power comes with great responsibility.
• Financial and Management Responsibilities
• Social responsibility
• Providing decent wages to employees
• Providing value in exchange for the
customer’s money
• Trading fairly with other members in
the industry
• Sharing wealth with other members
of the community
• Making sure the environment
1-47
 • Innovation
• Is the process of creating
something new, which is central to
the entrepreneurial process.
Economic • Small firms are twice as innovative
per employee as large firms.
Impact of • Job Creation
Entrepreneurial • In the past two decades, economic
activity has moved in the direction
Firms of smaller entrepreneurial firms,
which may be due to their unique
ability to innovate and focus on
specialized tasks.

1-48
Entrepreneurial Firms’ Impact
on Society and Larger Firms
• Impact on Society
• The innovations of entrepreneurial firms
have a dramatic impact on society.
• Think of all the new products and services
that make our lives easier, enhance our
productivity at work, improve our health,
and entertain us in new ways.
• Impact on Larger Firms
• Many entrepreneurial firms have built
their entire business models around
producing products and services that help
larger firms become more efficient and
effective.

1-49
Importance to filipino people
Improves guidelines in their
wealth-creating ventures

Helps improve their financial and

social life

Helps broaden their creativity

Helps make their lives happy,

fruitful, and successful
 1. Improves employment in the
community
2. Creates new demand in the market
IMPORTAN 3. Make substantial contribution to
CE TO the raising and collection of taxes
LOCAL 4. Facilitates the movement of the
factors of production
COMMUNI 5. Promotes a peaceful and loving
TY community
6. Increases constructive competition
 Importance to the
Philippine economy
Encourages competitiveness and thereby
challenges entrepreneurs to keep improving their
products and services

Helps find an entrepreneurial niche in the world

market

Helps hasten the economic recovery process of

the Philippines during financial turmoil or
crackdown

Facilitate the smooth flow of money in the local

market

Assists the national government in its desire to

have favourable economic ratings in the world
market.
 1. ENVIRONMENTAL FACTORS
These factors relate to the place or
conditions in which an entrepreneur
has to work. Factors such as economic
and social conditions, political
climate, legal system, and market
Factors Affecting situations are just few examples of
Entrepreneurship environmental factors that
significantly affect the economic
activities of an enterprise.

For example, the tax imposed by the

Bureau of Internal Revenue on the
online sellers of commodities affects
the production of goods and/or
services of an enterprise.
 2. PERSONALITY FACTORS
These are the traits possessed by an entrepreneur:
1. DRIVE. An entrepreneur is self-motivated enough to
pursue his chosen course without relenting even in the
face of adversity. If he fails in his first attempt, he
makes another attempt.
2. CRITICAL THINKING. An entrepreneur’s job involves

Factors Affecting decision-making and problem solving. A man with

superior thinking ability can see through the maze of
information (or disinformation) brought before him.
Entrepreneurship 3. HUMAN RELATIONS ABILITY. An entrepreneur
possesses high social awareness and ability to build
relationship with others.
4. ABILITY TO COMMUNICATE. Communication skill is a
very important characteristic that an entrepreneur
must possess in order to succeed. The ability to
understand and to be understood makes it easier for
the entrepreneur to transact business.
5. TECHNICAL KNOWLEDGE. An entrepreneur must
have familiarity of the business venture he is going to
undertake.
 2. PERSONALITY FACTORS
6. REASONABLE RISK TAKER. When a person starts a
new venture, he has already begun to assume the risk of
business failure. Entrepreneurs enjoy challenges. But
they are careful and calculating. So, they do away from
high-risk situations, because these might not be
attainable. However, entrepreneurs also avoid low-risk
situations because there are no challenges. A risk
situation exists when results are not certain, either it is

Factors Affecting success or failure. In view of the risk-taking abilities of

entrepreneurs, they make things happen rather than let
them.
Entrepreneurship 7. SELF-CONFIDENT. Entrepreneurs have strong faith in
their abilities. They believe they can be the best in their
field. They do not accept things as they are, because
they believe they can do things better.
8. GOAL SETTER. An entrepreneur usually has a specific
target and because he is persistent to achieve a certain
target, he creates strategies and action plan.
9. ACCOUNTABLE. An entrepreneur takes full
responsibility of whatever will happen to the enterprise.
10. INNOVATIVE. An entrepreneur always seeks for
something new and useful product or service. He always
strives to discover new things or strive to improve
existing products or services.
 3. BIOLOGICAL FACTOR
This factor is something new. The writer of
this module decided to include biological
factor since many enterprises had been
affected by the COVID-19 pandemic. This
pandemic is a kind of viral respiratory
Factors Affecting infection that has no cure yet at the time of
this writing.
Entrepreneurship Various enterprises and commercial
establishments stay closed, work stoppage
occurred, and there was a limit in mobility
of almost everyone in the entire world.
However, other businesses strive because
of this factor such as the manufacturers of
alcohol, personal protective equipment
and face masks. Entrepreneurs of this sort
were able to design an innovative product.
 END OF
LECTURE
ASSIGNMENT
Performance Task#1
(30 points)
• Assessing the case of Anna’s Hair
Saloon, based on the flow of
benefits and contributions of
entrepreneurship, LIST DOWN the
effects of Jenny’s activities TO ALL
who are affected by her
entrepreneurial activities.
ANNA’S HAIR SALOON
Anna, upon seeing a promising and brilliant business opportunity in the
community, opened a beauty shop.
She went to DTI, the Local Government of Virac, and the BIR to process, pay,
and comply with all the documentary requirements and fees in opening a business.
The total taxes and licenses paid by Anna in opening the business amounted to
P10,000.
Upon receipt of the business permit, Anna immediately bought all the needed
equipment and fixtures, she paid P60,000. She then rented a business space at
P10,000 per month.
She hired and employed five beauticians and provided them salary above the
minimum salary and all statutory benefits. The total annual compensation and
benefits paid by Jenny to her employees for the year amounted to P 540,000.
Anna at the end of the year is enriched by P590,000 after paying the annual
income tax of P110,000 to the BIR
 END
(Prepare for the 1 Summative Test)
st