UNO-R NSTP130

Dimension of Development:
ENTREPRENEURSHIP
Learning Objectives

1. At the end of the chapter, the students are expected to

Explain entrepreneurship.
2. Recognize the different sustainable entrepreneurial
activities.
3. Describe what a social entrepreneur is and is not.
Overview
This chapter presents the fundamental concepts and
theories of entrepreneurs and social entrepreneurship. It
also discusses small and medium-sized businesses (SMBs)
especially small-scale entrepreneurship that promotes,
develops and assists the small and medium-sized enterprise
(SMEs).
 The key concept of entrepreneurship is innovation.
Fajardo (2009) defines entrepreneurship as the new or
different ways of doing things using technology,
marketing, human relations and management. It also
means an economical and faster method of
distributing goods. Such applications in
entrepreneurial activities generate more jobs, income,
goods and services and ultimately create a better
economy and a higher standard of living for the
people.
ENTREPRENEURSHIP

Fajardo (2009) stresses that entrepreneurship is the

effective and efficient way of managing the business
capacity and quality of an individual toward customer
satisfaction. Coloma (2004) sees it as all kinds of
opportunities in business which can reach the target market.
ENTREPRENEUR

An entrepreneur is someone who thinks creatively,

plans strategically and projects clear realistic and
object plans. He/She efficiently organizes, manages
and faces the risks in a business. Moreover, is a
member of the society, is confident and believes in
the possibility of change.
An entrepreneur according to Lee and Lee
(2008) should be:
1. an administrator
2. a planner
3. a leader
4. a negotiator
5. a communicator
6. a decision maker
7. a good follower
How does one develop his/her abilities as an
entrepreneur?

1. Get interested in creating something useful to the

society/community.
2. Use his/her creative capacities to the fullest by being
sensitive to what is beautiful and to the day-to-day needs
of the society/community.
3. Rely on oneself instead of being dependent to other
4. Be conscious and aware of his/her society/community’s
sources of income.
Social Entrepreneur
Social entrepreneurs are pioneers of innovations that
benefit humanity. They are drivers of change. Together with
institutions, networks and communities, social entrepreneurs
create solutions that are efficient, sustainable, transparent and
have measurable impact. When people start a business , they
tend to see profitability as the ultimate goal. Eleuterio (2000)
finds these notions of business as myopic. He states that a
social entrepreneur must be a visionary.
Advantages of Managing One’s own Business.

1. Personal relationships with customers and employees.

2. Flexibility in management
3. Government incentives
4. Knowledge of record-keeping techniques
5. Independence
Disadvantages of Managing One’s Business

1. Difficult in raising capital

2. Risk of failure
3. Limited management skills
4. Lack of opportunities for employees
Retailing
Retailing is concerned with selling certain goods that
usually satisfy potential and existing customers. It extends
beyond mere selling and involves the following services:
1. Storekeeping
2. Pricing
3. Advertising
4. Record-keeping
5. Maintaining inventory
Service Types of Entrepreneurial Activity
Although Potential businesses are plenty, the following are
the common forms of profitable entrepreneurial ventures.
1. Food Services
2. Lodging Services
3. Financial Services
4. Recreation and Tourism Services
5. Transportation Services
6. Personal Services
7. Repair and Maintenance Services
8. Rental Services
 SOCIAL RESPONSIBILITY OF ENTREPRENEURS

1. Adopt a mission to create and sustain social value. (not just

commercial)
2. Recognize and relentlessly pursue new opportunities to serve that
mission, engage in a process of continuous innovation
adaptation, and learning and act boldly even with limited
resources currently at hand.
3. Exhibit a heightened sense of accountability to the
constituencies served and for the outcome created.
PHILANTHROPISTS

A successful business person is one who also helps the less

privileged in the society. He/She donates a considerable
amount of money to a foundation that for instance,
supports early childhood education or sets up hospitals in
poverty striken areas. Although philanthropists are critically
important in the society and many of them help finance
social entrepreneurial activities, they should not be
confused with social entrepreneurs.
ACTIVISTS

Activists, who are putting pressure on policy

makers and the public to stop a specific
practice, are not social entrepreneurs.
COMPANIES WITH FOUNDATION

The priority of a company is to make money for its

shareholders. It is an example of social entrepreneurship
practice which subsumes value appreciation at the
service of transforming social and environmental
conditions.
DEVELOPING A BUSINESS PLAN

Planning involves asking and answering the following:

1. What to do
2. How to do it
3. When to do it
4. What to expect in the future
Planning should always be geared toward customer
satisfaction. It should be:
1. Realistic – It must be based on available human, financial
and physical resources
2. Based on felt needs – The objectives of an entrepreneur
should be based on the needs of the community.
3. Flexible – Planning should adjust to the trend and
consumers’ tastes.
4. Starting with simple projects - in the Philippines many
people are poor and have no business experiences. The
simplicity of the project refers to the micro type of business
which requires simple management and technology.
CRITERIA FOR BUSINESS PLANNING
1. Clarity of objectives
2. Satisfactory accomplishment of objectives in terms of
quantity, quality, time and cost.
3. Provision of guidelines to attain objectives.
4. Identification of departments/units involved
5. A set time frame or duration
6. Specified resources and corresponding costs
7. Designated and accountable officers/executives
CONCLUSION

Change is the only permanent thing in the world.

People should not be afraid of innovation especially if this
will help improve the system or way of doing things or if it
will provide solutions to the existing problems.
 Entrepreneurship helps people become more creative,
confident, bolder and responsible in their actions to achieve
the desired goals.
Through social entrepreneurship, business people are
inspired and motivated to come up with significant ideas that
can provide positive changes in the way people in general
lead their lives in the society where they live.
THANK YOU FOR LISTENING ATTENTIVELY