Entrepreneurship

Group 1
Altovar, Kristal Gail S.
Cirwelas, Hazel Anne C.
Garcia, Liezel A.
Magnaye, Patricia V.
Villegas, Dhenpol Elleine M.

Mrs. Annalita Austria

Module 1: Overview of Entrepreneurship
At the end of this module, I can:

1. Discuss the relevance of entrepreneurship in general, including its economic

importance.
2. Define who is an entrepreneur.
3. Explain the key concepts of common and core competencies in
entrepreneurship.
4. Delineate clearly between entrepreneurship and employment.
5. Explore opportunities for entrepreneurship as a career.

What Is Entrepreneurship?

Entrepreneurship is a proactive process of developing a business venture to

make a profit. It involves seeking opportunities for a market, establishing and operating
a business out of the opportunity, and assessing its risks and rewards through close
monitoring of the operations. With this definition, being an entrepreneur may seem
difficult, but it can be rewarding if the enterprise flourishes.

An entrepreneur is successful if the business that he or she envisioned has

materialized into a thriving industry with regular customers and financial gain.

Societal and Economic Benefits of Entrepreneurship

1. Entrepreneurship produces more jobs that equate to an increase in national

income.
2. Entrepreneurship amplifies economic activities of different sectors of society.
3. Entrepreneurship introduces new and innovative products and services.
4. Entrepreneurship improves people’s living standards.
5. Entrepreneurship disperses the economic power and creates equality.
6. Entrepreneurship controls the local wealth and balances regional
development.
7. Entrepreneurship reduces social conflicts and political unrest.
8. Entrepreneurship elicits economic independence and capital formation.

Who Is An Entrepreneur?

The word “entrepreneur” has a French origin and was coined from the words
entre, which means “between,” and prende, which means “to take.”
 An entrepreneur is a unique individual who has the innate ability and
extraordinary dedication to establish and manage a business, acknowledging all the
risks and reaping its rewards. Like other vocations, being an entrepreneur is also
calling. It is not a career that one can just jump into when he or she decides so. It entails
a holistic business talent to be considered one, ranging from product and marketing
expertise to operations agility, and to financial proficiency.

An entrepreneur will only expect returns once he or she already added or created
value out of an opportunity. An entrepreneur’s natural talent is being perceptive for
opportunities in his or her surroundings that normal people don’t give importance to or
often neglect. Leadership is the core of every entrepreneur.

Entrepreneurship is composed of varying degrees or levels of intensity.

According to Action Coach, there are five levels of entrepreneurial development.

1. The self-employed.
2. The manager.
3. The leader.
4. The investor.
5. The true entrepreneur.

The world of entrepreneurship these days has already evolved, and new terms
are coined to suit an entrepreneur’s field of expertise. Here are some of them.

1. Technopreneur - is an entrepreneur who puts technology at the core of his or her

business model.
2. Social Entrepreneur - is the one who takes advantage of the country’s social
problems and turn them preprofitable institutions with the intention of helping the
disadvantaged community rather than making a profit.
3. Intrapreneur - is an entrepreneur in a large company or corporation who is
tasked to think, establish, and run a new big idea or project. Intrapreneurs are
usually the product managers or the business development managers of the
company.
4. Extrapreneur - is an entrepreneur who hops from one company to another to act as
the innovation champion, providing creative and efficient solutions.

Common and Core Competencies in Entrepreneurship

Entrepreneurship is a career that requires a plethora of common and core

competencies. Therefore, to be considered a successful entrepreneur, he or she must
possess common entrepreneurial competencies that are needed all throughout the
entrepreneurship career. At the same time, he or she should also possess core
competencies that are needed for business sustainability and management.

Here are the common traits that entrepreneurs should always have.

1. Proactive.
2. Agents of change.
3. Risk takers.
4. Have a sharp eye for opportunities.
5. Sociable.
6. Networkers.
7. Decisive.
8. Balanced.
9. Innovative.

Here are the core traits that entrepreneurs should developing managing and
running the business.

1. Leaders.
2. Communicators.
3. Specialists.
4. Problem solvers.

Entrepreneurships and employment are two different career path that a person can
choose depending on his or her personal aspirations and work characteristics.

Table 1.1. Pros and cons of entrepreneurship vs. employment

Important Career Entrepreneur Employee

Factors
1. Income  Income generated passively
even when the entrepreneur
is resting
 Opportunity income
unlimited, depending on the
success of the business
 Income only earned when
the business is successful
 Income generated actively
(i.e., on working hours
only); no work = no pay
 Income usually fixed per
month and increases every
year depending on the
employer and the
employee’s performance
 Income earned whether the
business is successful or
unsuccessful
2. Hiring and Firing,  Provide jobs; is the owner of  Seeks for a job; is the one
Organizational the business and conducts applying for a job and is
Setup, and Major the talent selection interviewed by the
Key Result Areas  Fully responsible for serving company’s hiring officers
customers, making the  Has the goal of satisfying
business only the employer or the
profitable/sustainable, and direct supervisor
providing employee  Fully dependent on he
satisfaction. employer’s performance; is
 Has the power to disengage at risk of losing his or her
nonperforming employees job if the company does not
applying the due process perform well; may find it
policy of disengaging difficult to just leave their
personnel below par employer if this is
 Can venture into expansion their only source of income
of business such as  Can only work for the
franchising and buying other current employer
similar businesses exclusively
3. Daily Tasks  Performs all necessary  Has a routine tasks and
variable tasks to establish works on regular or normal
and manage a startup hours
business, which usually  Follows policies,
takes most of the procedures, and
entrepreneur’s time; spend memoranda from the
more hours on work than a employer
regular employee and
sometimes gets no sleep
 Prepares policies,
procedures, and
memoranda for the business
4. Leisure Time and  Has a flexible schedule and  Has a limited number of
Vacations can take unlimited number vacation days imposed by
of vacation days (applicable the employer
only if the business has
stabilized already)
5. Taxation  Taxed on the net income;  Taxed on the gross income;
can claim taxable income cannot use expenses
deductions for allowable incurred related to the job
expenses incurred by the such as food and
business transportation expenses to
claim for deductions from
taxable income
6. Comfort Level at  Is comfortable in doing  May be comfortable with
Work multiple and challenging routines and minimal risks;
tasks and takes may also be comfortable in
accountability with the risks working for the company
 and profits of the business; itself
does not want to be
confined in a box; thinks
outside the box or
sometimes thinks there is no
box

Careers in Entrepreneurship

Entrepreneurship consists of vast career options depending on the passion and

field of interest of the entrepreneur. The saying “When you love what you do, it’s as if
you are not working” is very much applicable to entrepreneurs who consider managing
their business as enjoyment rather than working exhaustively.

Most common small business in the Philippines.

1. Sari-sari store.
2. Rice retailing.
3. Food cart business.
4. Printing business.
5. Buy-and-sell business.
6. Street food business.
7. Flea market business or tiangge.
8. Online selling business.
9. Cellphone loading business.
10. Laundry and dry cleaning business.
11. Hair styling and makeup business.
12. Spa, gym, and nail care business.
13. Video and photography business.
14. Tutorial business.
15. Baking business.
16. Web site development and design/blogging.
17. Direct selling business.
18. Car wash and car care business.
19. Bar, café, and restaurant.
20. Water station and LPG (liquefied petroleum gas) station.

No successful business started huge right away. A business starts with an idea.
Once the business is established, the business owner, the entrepreneur, can choose to
expand and explore franchising, intrapreneurship (managing a startup business in an
established business), and acquisition (buying another similar business or a new
business).

Franchising is a business arrangement wherein the franchisor, who is the owner

of the business, acquires distribution centers through the franchisees or the affiliated
dealers.

Entrepreneur Philippines’ franchise business options in the Philippines, which a

potential entrepreneur can pursue after college or even after finishing the K to 12
program.

Franchise or Startup Business

 Bakeries, bakeshops, an bread  Food and snacks carts

products
 Bars, cafés, and coffee shops  Gas stations / petroleum products
 Beverage and confectionery  General merchandise and retail
 Car care  Health and wellness (salon,
massage, spa, and gym)
 Clothing and accessories  Schools
 Convenience stores  Services (personal and business)
 Drug stores and pharmacies  Water stations
 Fast food establishments and
restaurants

Other Additional Business Opportunities

 Dealerships
 Direct selling
 Distributorship

QUESTIONS

1. It is the proactive process of developing a business venture to make a profit.

(Entrepreneurship)
2. Entre means what? (Between)
3. A unique individual who has the innate ability and extraordinary dedication to
establish and manage a business, acknowledging all the risks and reaping its
rewards. (Entrepreneur)
4. Entrepreneur that takes advantage of the country’s social problems and turn
them preprofitable institutions with the intention of helping the disadvantaged
community rather than making a profit. (Social Entrepreneur)
5. Entrepreneur who hops from one company to another to act as the innovation
champion, providing creative and efficient solutions. (Extrapreneur)
6. According to this, there are five levels of entrepreneurial development.
(Action Coach)
7. A career that requires a plethora of common and core competencies.
(Entrepreneurship)
8. A business arrangement wherein the franchisor, who is the owner of the
business, acquires distribution centers through the franchisees or the
affiliated dealers. (Franchising)
9. Prende means what? (To take)
10. Entrepreneur who puts technology at the core of his or her business model.
(Technopreneur)