MODULE 1:CONCEPT OF

ENTREPRENEURSHIP AND ITS ROLE IN

ECONOMIC GROWTH

ENTREPRENEURSHIP
ENT01
 Module Review:

This module can give brief description on what

entrepreneurship is all about and how this can help
boost the economy of the country. It can give an
overview on the attributes of potential entrepreneur
and open the mind of students for possible
enterprise venture in the near future.
 Lesson 1: Concept of Entrepreneurship and its role in
Economic Growth
Introduction:
● Philippines being the haven for the development of young
entrepreneur, we need to focus on areas where business opportunities are
open and can grow in which we can help those from small to medium
enterprises. Opening new avenue to explore the market with new ideas,
untapped and undeveloped to help promote other products which can be
further utilized. The aid of government plays a vital role in sustaining
business especially in the agriculture sector. The support in the
production of various products and distribution of goods must be
analyzed thoroughly to lessen the overproduction and support the
domestic consumption and export of products as well.
Lesson 1: Concept of Entrepreneurship and its role in
Economic Growth
Introduction:
● Among all the economic resources such as; land,
labor, capital entrepreneurial ability, entrepreneurship
is the most important one. The gauge of the economic
performance of a country can be seen on how quick and
efficient entrepreneur are in discovering new ideas and
channeling economic resources towards profitable
business ventures.
Learning Outcomes:
● 1.Definition of entrepreneurship
● 2. The key concepts of being an entrepreneur and the development
of entrepreneurship.
● 3. The role of entrepreneurship in economic growth
● 4. Identify the entrepreneurial skills and competencies.
● 5. The role of entrepreneurs in our economy
● 6. Identifying the challenges for entrepreneurship
● 7 Discover the successful entrepreneur and their success stories.
Discussion

Entrepreneurship:
● It is define as the science of converting processed
ideas into a remarkable business venture. According to
Fajardo (2009) it is the capacity for innovation,
investment and expansion of new market, products and
techniques. It entails risks and investments of resources
to make something unique or new, design new way of
making something that already exists or creates new
markets.
 Discussion
● Entrepreneur:
● An individual who is eager to profitable opportunities for the
exchange of goods or services. The person who organizes, manages,
directs and assumes the risks of business or enterprise.
Example:
Vendors who sell school supplies before the opening of school. During
rainy season sell rain coats, umbrellas or other products needed for the
season and during Christmas time sell various items which are commonly
purchase during this season.
 Discussion
● Entrepreneur Support the Economy:
● Entrepreneurs do not only create jobs in their own company
but also contribute to improve the local economies or the
community. When people are employed they earn money have spend
this in local business such s clothing, foods and others. The existence
of a new company can encourage others to open businesses in the
same area, which in turn can create new job opportunities.
● Giving Back:
● Entrepreneurs contribute to their communities with their
charitable contributions. Some give money to charity and 70% donate their
time.
 Significant Role of Entrepreneurs in our Economy

● 1.As an Agent of change:

● An entrepreneur is an individual who can make new product
and sell them in the market. Someone who introduces innovation on
existing product or service, or make changes in the production
process.
● Creativity and innovation are what entrepreneur differs
from ordinary businessman. Many businessman imitate enterprising
when these products/ services are gaining profit due to fads or
trends and in the end their profits can be eliminated due to the
presence of many competitors in the market who are also doing the
same.
Discussion
● 2. As a Resource – user employer
● He combines and employes different types of resources to
produce new good or service. Putting up their own business does
not only make profit but also creates employment and generating
income to other people.
● 3. As a driving force for economic growth and development
● As more goods and services are produced, more income is
generated, thus the Gross Domestic Product (GDP) of the country
continues to grow.
 Entrepreneurial Skills and Competencies

● 1.Negotiating
● 2. Planning
● 3. Risk assessment
● 4. Purchasing
● 5. Accounting
● 6. Recruitment
● 7. Training
Entrepreneurial Skills and Competencies

● 8. Selling
● 9. Controlling
● 10. Dealing with emergencies
 Personal Entrepreneurial Competencies (PECs)

The Management System International (MSI), an

international consulting firm had identified ten personal
entrepreneurial competencies.
● 1.Opportunity Seeking and Initiative:
● It is the ability to seek and identify new or unusual
opportunity and pick up business ideas from it.
 Personal Entrepreneurial Competencies (PECs)
● 2. Persistence:
● It is the readiness of the entrepreneur to take
repeated actions or alternative strategies when obstacles
or failures are faced. He is not easily discouraged by
negative comments and failures.
● 3. Commitment to Work Contract
● The willingness to put extra effort to meet deadlines
and obtain his objectives.
 Personal Entrepreneurial Competencies (PECs)
● 4. Demand for Quality and Efficiency:
● Striving to produce quality product or service
better, faster and at the least cost possible.
● 5. Risk Taking:
● The ability to calculate risk by finding means to
minimize risk and control the outcome.
 Personal Entrepreneurial Competencies (PECs)
● 6. Goal Setting:
● Foresight and vision to set short and long – term
objectives and communicate the to his subordinates and
customers.
● 7. Information Seeking:
● Eagerness to get information from consumers,
suppliers, competitors and experts.
 Personal Entrepreneurial Competencies (PECs)
● 8. Systematic Planning and Monitoring
● It is the ability to develop comprehensive plans, monitor
progress and use feedback in decision making to improve further his
business.
● 9. Persuasion:
● It is the ability to employ different strategies to influence and
persuade people. It make use of his network and contacts to achieve
his objectives.
● 10. Self- confidence:
● The belief in his own ability to get difficult tasks done.
 Entrepreneur as a Missionary:
●Perceived opportunities in exchange of goods with the
desire to gain profit. Creates environment in which they
believe is possible and possibility of failure is controllable.
He takes risk and invest his talents and resources to create
something new or different in which his customers prefer to
buy.
 Entrepreneur is Goal- Driven:
●He exercises the control sets high goals and strives to
attain the projected target and accomplishment. Plans
activities and programs in the operation to avoid the risk he
foresees. Not afraid of challenges and assumes responsibility
for results. Makes sure that people work based on specified
work programs and schedules.
 Entrepreneur is a Marketing Man
●He knows how to utilize his resources and pursue the opportunities
and makes immediate action to attain his personal gain. Not afraid to
innovate and make modifications to make the customer aware that his
product or service is more superior than those being offered by the
others.
 Entrepreneur Starts Small to Become Big
●Many entrepreneurs start with small business but because of their
managerial talents and persistence they explore and make use of the
opportunities. At the early stage, their growth orientation is for expansion
of their operation and they continuously pursue approaches that differs
from the others.
● The Making of An Entrepreneur:
● Entrepreneur consider business opportunity as a
chance to find new ways to solve problems rather than
solving the problem. A manager is an adapter while
entrepreneur is an innovator. Manager employs discipline
and scientific methodical approach while Entrepreneur
approaches problem on a different angle. Focuses on
discovering problems and make new ways for the solutions.
It is a process that can be developed, learned and nurtured.
 Factors that Develop Entrepreneurial Activities:

● 1.The Entrepreneur Takes the Initiatives:

● He takes the initiative of venturing into business with his
great interest in the opportunity that goes along with it. He knows
that he can operate the business with minimum risk.
● 2. Organization of Capital Resources:
● Financial and human resources are important factors in the
start of business. His savings and other financial resources can start
operation on small scale together with his trusted family members
or friends that could help him develop his dream enterprise
 Factors that Develop Entrepreneurial Activities:
● 3. The Development of Administrative Machinery:
● Organizational structure are based on the need of the
operation. Specific duties and responsibilities are assigned to
individuals with knowledge, skills and talents that are fitted to their
respective position.
● 4. The Development of Entrepreneurial Autonomy:
● Entrepreneur takes the lead in all the activities of the
organization especially at the early stage of operation. He knows
the best direction of the enterprise and knows of the calculated risk
involved.
 Factors that Develop Entrepreneurial Activities:

● 5. The Development of SWOT Analysis

● To avoid risk careful analysis of Strength,
Weaknesses, Opportunities and Threats (SWOT) must be
made. The entrepreneur must see this to risk involve must
be seen before this happen.
 Peculiar Characteristics of Managers in Solving
Problems:

1.He develops systems and procedures that are precise

based on current practices in an industry.
2. The manager is interested in solving organizational
problems than finding other ways in the solution of the
problems.
3. Regulate in the refinement of policies and procedures
and tries to revise them to solve the existing problems.
 Peculiar Characteristics of Managers in Solving
Problems:

4. Finds ways and get solutions and accordance to

routinary activities.
5. He is interested in details and sensitive to group
cooperation to arrive at group accomplishments.
 Characteristics of an Innovator Entrepreneur in
Solving Problems:

1.He looks at the problem in a different angles and find

ways to avoid the same.
2. Discovers the roots of problems and develops other ways
to solve the problem in a better way.
3. He develops basic assumptions based from the careful
analysis through SWOT.
.
.
 Characteristics of an Innovator Entrepreneur in
Solving Problems:

4. More interested in the end results than the means to

achieve it. Does not like details and routine work.
5. He capitalizes on people with bright ideas and talents
and gets their opinions of majority.
 The Development of Entrepreneurship
The Making of a Filipino Entrepreneur
● The colonization of the Filipino for more than 500 years plays a great factor in
the gradual development of entrepreneurial activity in the Philippines. If
someone owns a small business such as sari- sari store, cellphone repair shop or
small tailoring these make them an entrepreneur. However, to some extent,
entrepreneurship is more than being a self- employed and making a living out of
the meagre income to support family needs or little things they want.
● Filipino entrepreneur has a very shallow foundation. Most Filipino
business starts on a copy- cat syndrome. For example, If Juan opens a sari- sari
store and Pedro see the business flourish he will open store opposite the other.
And it goes to other businesses. It is a common scenario in most Philippine
business condition.
 The Challenges for Entrepreneurship

Young entrepreneur of this generation should look up the

high standard of values and character of entrepreneurs who went
up the ladder of success.
1.The new entrepreneur must be a doer and willing to work hard
until he achieves the task he wants for himself.
● He must have self- confidence and be versatile to
overcome risk with strong determination. He knows how top play
with the development of new opportunities and the risk attached
to this.
●
 The Challenges for Entrepreneurship

2. Personal attention and comprehensive awareness for the progress

of the business is not trusted on other people.
An entrepreneur must be in direct control of his business.
He knows how to control the operation and must personally
supervise the business. Verify the data and the financial figures
spent and the earned profit from the operation.
3. The new entrepreneur must have high sense of integrity tat he
stands firm on his principles and ideals.
He is a visionary, innovative and unstoppable in reaching his
set goals.
 The Challenges for Entrepreneurship

4. Emotional stability is an important factor in the making of

entrepreneur.
● Interpersonal relationship is vital in negotiations and an
effective personal communication is a key factor in closing
business deals. He must learn how to control his temper.
5. The built in self- starting mechanism that drives an entrepreneur
to success is his ability to manage people and resources. It is the
ability to plan, organize, direct and controls the physical and
material resources of his business.
 THE STARTING POINT TO ENTREPRENEURIAL SUCCESS:

1.Start to be on your own.

● Entrepreneur must start his own business and never
become an employee for the rest of his life.
● The experience someone gets as an employee, get new
ideas and develop these into entrepreneurial style. Learn to save
money and placing this into proper investment and make it as
starting capital to operate the enterprise.
 THE STARTING POINT TO ENTREPRENEURIAL SUCCESS:

2.Explore the business environment:

● Find the things that you can do best, where your talent is
and your interest. Always remember that the main objective of
business is to produce the best goods and give better service to the
clientele.
● 3. Be in control.
● One must not trust his business to somebody. Be in control
of the operation and develop people whom you can work with
dedication and with values the same as yours.
● Motivate people to excel and make partner them in decision making.
 THE STARTING POINT TO ENTREPRENEURIAL SUCCESS:

4. Have a good accountant or a trusted financial advisers.

● A good accountant or financial adviser is needed to help in
the financial activities of the business. However, develop control
procedures and make sure that you are still in control of your
business. In approving transactions involving money and its
disbursement.
5. Seek the advice of professionals
● Seek advise especially in terms of legal and other matters
related to the operation of the enterprise.
Entrepreneurial Management Demands

1.The entrepreneur is alert to opportunities and perceptive to

make things happen.
● The entrepreneur look at things much ahead of the other
people. He sees things in a different ways and perspective and
knows how to develop strategies to make these things happen. He
always pursues until he succeed in making this happen.
2. The entrepreneur has the health and endurance to work long
hours.
● The entrepreneur does not stop working until he finds
solutions to his ideas. He will sacrifice his personal pleasure for his
goal and ideal set up of business.
Profile of a Successful Entrepreneur

1.Entrepreneur has strong desire for independence:

● He does not like to be attached to his employment.
Seeks independence and strives to develop his own
business.
2. Entrepreneur develops strong drive to succeed.
● He does not depend on others to succeed. He
always thinks that his success lies on his own making.
Profile of a Successful Entrepreneur

3. Entrepreneur has strong determination in decision making.

● He must possess strong power to carry decisions. He
make use of his inner drive to make profit before anyone else
take the opportunity.
4. The entrepreneur develops feedback mechanism for
results.
● Feedback mechanism is one important factor of a
successful business entrepreneur. Entrepreneur goes back to
where he started and find out things the way they are. He needs
accurate data and figure to make wise decisions.
Profile of a Successful Entrepreneur

5. The entrepreneur is a result- driven individual.

● The result of an accomplished goal is profit.
Expects great results which is on time and with highest
quality.
Activity 1: Potential Entrepreneur must ask himself before
starting a business.

Answer YES or NO to assess yourself.

_____1. Competitive? Do you have the urge to be the first, best, in
class?
_____2. Creative? Do you easily see a new way of using an old
product, new solution to an old problem?
_____3. Organized? Can you always find what you are looking for?
Are you always onn time during an appointment?
_____4. Decisive? Do you make quick and good decision as problem
arises, most of the time?
Activity 1: Potential Entrepreneur must ask himself before
starting a business.

_____5. Dedicated/ committed? Are you willing to forego a party to

finish your assignment?
_____6. Diplomatic and tactful? Are you diplomatic when discussing
issues with your friends?
_____ 7. Emotionally stable? Are you easily stressed out when
confronted with deadlines? Other challenges?
_____8. Energetic? Do you feel sick most of the time?
_____9. Focused? Are you easily distracted by noise, or other
activities when doing homework?
Activity 1: Potential Entrepreneur must ask himself before
starting a business.

_____10. Hardworking? Are you prepared to work for long hours,

24/7?
_____11. A leader? Have you assumed a position lately in class
organization? School clubs?
_____12. A learner? Have you acquired new skill or develop new hobby
over the last 12 months?
_____13. Optimistic yet realistic? Do you respond positively to
challenges?
Activity 1: Potential Entrepreneur must ask himself before
starting a business.

_____14. Opportunity seeker? Do you have a knack for spotting

opportunity?
_____15. Persistent? Are you easily daunted by failures and hard
work?
_____16. Persuasive? Is it easy for you to influence people and get
them to your side?
_____17. A people person? Do you enjoy mingling with people? Are
you able to get along well with others?
Activity 1: Potential Entrepreneur must ask himself before
starting a business.

_____18. Planner? Goal setter? Do you often prepare a “to- do list” ?

_____19. Perceptive with foresight?
_____20. Research – oriented? Are you naturally inquisitive and do
you seek information to satisfy your curiosity?
_____21. Responsive to criticism? Do you look for new ways of
doing things, discover new approaches when confronted with
criticisms?
Activity 1: Potential Entrepreneur must ask himself before
starting a business.

_____22. A risk taker? Are you able to take calculated risk or risk
within reasons?
_____23. Self confident? Are you confident with your own traits?
_____24. Self – starter? Do you take initiatives in starting a project?
Group activity

1. Discuss the profile of the top 20 richest Filipino (2023)

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