ENTREPRENEURSHIP
LESSON 8-9
OBJECTIVES:
At the end of the lesson, students are expected
to:
1. Understand the integral meaning of
entrepreneurship and entrepreneur.
2. Understand the need for establishing
endeavors in the Philippines.
Previous Lesson
ENVIRONMENTAL EDUCATION
And
HEALTH EDUCATION
THE HISTORICAL CONCEPT OF ENTREPRENEURSHIP AND
ENTREPRENEUR
Entrepreneurship is the practice of starting new organizations or
revitalizing mature organizations, particularly new businesses generally in
response to identified opportunities. It started in France after the French
Revolution. It was the start of Capitalism and end of Feudalism.
Economists argued that the concept of entrepreneurship, though closely tied
with the theory of economics and society, is independent of the classical
economics and is unable to coexist with it. The Classical Capitalism, which
was propagated by Adam Smith, spouses the optimization of what already
exists. It focuses on acquiring the most out of the existing resources and
establishing equilibrium or balance.
ENTREPRENEURSHIP DEFINED
• Entrepreneurship is the capacity of innovation, investment and expansion in new markets, products
and techniques. This definition implies that an enterprise at work whether an individual takes the
risks and invest resources to make something unique or something new, designs a new way of
making something that already exists, or creates new markets. (Prof. Nathaniel Left)
• Entrepreneurship as the capacity and quality of an individual in effectively and efficiently
managing a business towards customer satisfaction and profitability of services. It sees opportunities
and makes the best of them. It is putting good use something that otherwise may become wasted.
(Coloma & Herrera)
• Entrepreneurship is more than a word. It is a mission. We must perceive opportunities inherent
in change; we must create a desire for pushing the opportunities that arise; and we must create an
environment in which success is possible and the consequences of failure are tolerable.
ENTREPRENUER DEFINED
• An entrepreneur is a person of very high aptitude who
pioneers change, possessing characteristics found in only
a very small fraction of the population. It is anyone who
wants to work for himself or herself is considered to be
an entrepreneur.
• The entrepreneur originates from the French word,
entreprende, which means “to undertake”. In a
business context, it means to start a business.
• Entrepreneur is an individual who organizes, manages
and assumes the risk of business or enterprise. (Webster
Dictionary)
• … consists in doing things that are not generally done in
an ordinary course of business routine; it is essentially a
phenomenon that comes under a wider aspect of
leadership. (Cantillon)
CHARACTERISTICS AND KEY QUALITIES OF A
SUCCESSFUL ENTREPRENEUR
1. Inner Drive to Succeed. Entrepreneurs are driven to succeed and expand their business.
They see the bigger picture and are often very ambitious. They set massive goals for
themselves and stay committed to achieving them regardless of the obstacles that get in the
way.
2. Strong Belief in themselves. Successful entrepreneurs have a healthy opinion of
themselves and often have a strong and assertive personality. They are focused and
determined to achieve their goals and believe completely in their ability to achieve them.
3. Search for New Ideas and Innovation. All entrepreneurs have a passionate desire to do
things better and to improve their products or service. They are constantly looking for ways
to improve. They’re creative, innovative and resourceful.
CHARACTERISTICS AND KEY QUALITIES OF A
SUCCESSFUL ENTREPRENEUR
4. Openness to Change. If something is not working for them, they simply change.
Entrepreneurs know the importance of keeping on top of their industry and only way to
being number one is to evolve n=and change with the times.
5. Competitive by Nature. Successful entrepreneurs thrive on competition. The only way to
reach their goals and live up to their self-imposed high standards is to compete with other
successful businesses.
6. Highly Motivated and Energetic. Entrepreneurs are always on the move, full of energy
and highly motivated. They are driven to succeed and have an abundance of self-
motivation. The high standards and ambition of many entrepreneurs demand that they
have to be motivated.
7. Accepting of Constructive Criticism and Rejection. Innovative entrepreneurs are often
at the forefront if their industry. They readjust their path if the criticism is constructive and
useful to their overall plan, otherwise they will simply disregard the comments as
pessimism.
The Need for Entrepreneurship in the Philippine Setting
1. The long plight of the peasants is still existing in several
places of the country.
2. The Philippines can also be described and still considered as
pre-industrial.
3. Foreign control is still present in our country.
4. In the labor front, there is the constant rise in
unemployment.
5. The current global crises have diverse effect on Philippine
economy.
Exploring Entrepreneurial Ideas and Opportunities
In the entrepreneurial landscape, new ideas and opportunities are constantly in the conscious mind of the
entrepreneur. Entrepreneurs are attuned to opportunities and are always on the lookout for them. This process of
opportunity seeking is the one that makes innovation possible.
Opportunity offers the possibility of creating new value but it is often the case that the value created may not
be “pure” as when an entrepreneur invents a new product to be into the market. The way in which this opportunity
can be recognized may take shape in the form of the following combinations:
• New product – this can be in the form of a physical device, which provides a new means to satisfy a need or to
solve problem.
• New service – this refers to action which will satisfy a particular need or to solve a particular problem.
• New means of production – this happens when the new means of producing an existing product can deliver
additional value, like producing a product at a lower cost.
• New distribution route – a new way of getting the product to the end-user, which the customer finds easier,
more convenient and less time-consuming.
• Improved service – this means offering additional service element to the product like offering training in the
use of the product.
• New relationships -this can mean building relationships based on trust which creates value by reducing cost in
communication, monitoring and in strengthening networks against fierce competition.
Government Roles in Entrepreneurship Development
1. Peace and order 7. Public administration
2. Political stability 8. Production technology
3. Price stability 9. Marketing assistance
4. Taxes 10.Financial assistance
5. Infrastructure and training
6. Education and training
Government Undertaking for Entrepreneurship Development
The KALAKALAN 20 – also known as R.A. 6810, the
Magna Carta for Countryside and Barangay Business
Enterprises which provides incentives for countryside
and barangay business enterprises plus exemptions
from bureaucratic restrictions. This mandates the
promotion and financial assistance be given to
entrepreneurs through the Small and Medium
Enterprise Development Council.
Government Undertaking for Entrepreneurship Development
The One Town One Product (OTOP) – is a priority program of President Gloria Macapagal-Arroyo to
promote entrepreneurship and create jobs. Through OTOP, local chief executives of each city and
municipality take the lead in identifying, developing and promoting a specific product or service, which has
a competitive advantage.
The National Youth Commission – offers the Youth
Entrepreneurship Financing Facility Program (YEFFP) that
aims to:
• a. Enhance the entrepreneurial skills of the Filipino
youth;
• b. Support the business ventures of young people with
technical and entrepreneurial skills, who otherwise
ineligible under regular credit facilities, by providing them
easier access to credit;
• c. Encourage the self-employment of the Filipino youth;
and
• d. Establish a credit program for entrepreneurs.
Development of standards for materials
YOUTH ENTREPRENEURSHIP PROGRAM (YEP)
Republic Act No. 10679 otherwise known as the Youth
Entrepreneurship Act mandates the Micro, Small, and Medium
Enterprise Development Council (MSMEDC) through the
Department of Trade and Industry (DTI) to implement a
national program to promote youth entrepreneurship
development. Youth Entrepreneurship Program or YEP is a
focused program to address the young demographics of the
country to become productive individuals through
entrepreneurship. It will help young Filipinos develop their
entrepreneurial skills by offering them a comprehensive
package of interventions.
Business Ideas in the Philippines
1. Meat Processing
2. Food Carts
3. Fruit and Flavored Drinks
4. Hotdog, Barbeque and Burger Stand
5. Rooms For Rent
6. Car Wash and Minor Car Repairs
7. Junk Shop and Recycling Center
8. Flower Shop
9. Water Filling Stations
10. Laundry and Ironing Service
11. Fashion Accessories
12. Signs and Silkscreen Printing
Preparing A Business Plan as A Tool in Stating Up Small Business
• A business plan is a formal statement
of a set of business goals, the reasons
why they are believed attainable, and
the plan for reaching those goals. It
may also contain background
information about the organization or
team attempting to reach those goals.
Elements of a Business Plan
1. Introduction – provides synopsis of your entire business plan. The key elements that should be
included are:
a) Business concept. Describes the business, its product and the market it will serve. It should point
out just exactly what will be sold, to whom and why the business will hold a competitive advantage.
b) Financial features. Highlights the important financial points of the business including sales, profits,
cash flows and return on investment.
c) Financial requirement. Clearly states the capital needed to start the business and expand, it should
detail how the capital will be used, and the equity, if any, that will be provided for funding.
d) Current business position. Furnishes relevant information about the company, its legal form of
operation, when it was formed, the principal owners and key personnel.
e) Major achievements. Details any developments within the company that are essential to the success
of the business. Major achievements include items like patents, prototypes, location of a facility, any
crucial contracts that need to be in place for product development, or results from any test marketing
that has been conducted.
Elements of a Business Plan
2. Business Description. Description usually begins with a short description of the industry. When describing the industry,
discuss the present outlook as well as future possibilities.
3. Market strategies. The result of a meticulous market analysis. A market analysis forces the entrepreneur to become
familiar with all aspects of the market so that the target market can be defined and the company can be positioned in
order to garner its share of sales.
4. Competitive Analysis. Competitive analysis is a statement of the business strategy and how it relates to the
competition. The purpose of the competitive analysis is to determine the strengths and weaknesses of the competitors
within your market.
5. Design and Development Plan. The design and development plan section is to provide investors with a description of
the product’s design, chart its development within the context of production, marketing and the company itself, and
create a development budget that will enable the company to reach its goals.
6. Operations and Management Plan. The operations and management plan is designed to describe just how the
business functions on a continuing basis. The operations plan will highlight the logistics of the organization such as the
various responsibilities of the management team, the tasks assigned to which division with the company, and capital and
expense requirement related tot eh operations of the business.
7. Financial Components. Financial data is always at the back of the business plan, but that doesn’t mean it’s any less
important than up-front material such as the business concept and the management team.
