PSUR Entrepreneurial concepts and principles are not fixed. They constantly change and are highly influenced by the changes in the environment. The evolutionary processes happening in entrepreneurship are mainly due to the creativity and innovation born or created from business opportunities. As new ideas are created, new entrepreneurial ventures open. 2. A wealth-creating venture is an entrepreneurial undertaking wherein wealth is created. It is a business endeavor where the resources of the enterprise have been utilized fully to maximize the investment of the entrepreneur. The venture improves the life of the entrepreneur in terms of economic, financial, social, moral, and psychological aspects. 3. Valueisbasically the opposite of waste. Productsand servicesareconsidered valuable when they provide additional benefits to the buyers and users. In entrepreneurship, value is always measured from the perspective of the consumers. The goods and services become valuable when the consumers get additional benefits from using the products or availing of the services. 4, All businesses, whether big or small, are operating within the concept of risk-taking because of uncertainty. Nobody knows what will happen tomorrow. Business risks cannot be eliminated. They are inherent in the venture, Entrepreneurs, however, face the business risks instead of avoiding them. They find ways to minimize the effects of the business risks. A theory is a generalization that explains a set of facts or phenomena. It is not an absolute truth. It can be supported by another observation or proven to be otherwise. 2. Some theories on entrepreneurship include the following: a. Innovation theory. The innovation theory of Joseph Schumpeter considers innovation as the primary factor affecting development. b. Keynesian theory. The Keynesian theory of John Maynard Keynes attributes economic growth, especially during depression, to the government. c. Alfred Marshall theory. The Alfred Marshall theory generalizes that the organization plays the most significant role among the different factors of production.Risk and uncertainty-bearing theory. The risk-uncertainty bearing theory of Frank Hyneman Knight states that an entrepreneur faces the risk of uncertainty in the process of connecting the supplier and the buyer. Weber's sociological theory. The sociological theory of Weber asserts that social cultures have significant contributions to entrepreneurship. Kaldor's technological theory. The technological theory of Kaldor gives importance to the advancement of technology as an element of production. Leibenstein’s gap-filling theory. The gap-filling theory of Leibenstein advocates that entrepreneurship fills the gap in any economic activity. . Kirzner’s learning-alertness theory. The leamning-alertness theory of Kirtzner focuses on learning and alertness as the primary attributes of entrepreneurship. eS NE 1. Theentrepreneur and the owner of an ordinary small business are different in the following areas: .. Motive in opening a business oe Perception of risk in the business Reactions to changes in the environment . View on competition .. Vision for development and growth Horizon of business operation we me an . Sources of business funds 2. Knowing the differences between an entrepreneur and an owner of an ordinary small business will help you assess yourself, if you are an entrepreneur or a mere owner of an ordinary small business. Such knowledge will enable you to avoid completely the perceptions or behavior similar to the latter and focus more on the perceptions or behavior of the former.LESSON SUMMARY 1. Thetermentrepreneurship is commonly misunderstood. Itis often equated with the activities of ordinary small businesses. 2. ‘The common misconceptions on entrepreneurship include the following: a. Entrepreneurship applies only to manufacturing businesses. b. Entrepreneurship applies only to small businesses. ¢. Entrepreneurship applies mostly to persons with good educational background in business courses. d. Entrepreneurship applies only to a good economy. e. Entrepreneurship is simply opening a small business. 3. Knowing some common misconceptions on entrepreneurship will enable you to understand the concept of entrepreneurship and differentiate it from the activities of ordinary small businesses. A clear perspective of entrepreneurship will provide you with a good foundation in the study of this field PES A 1. Entrepreneurship affects the lives of the Filipinos, the local community, and the Philippine economy 2. Entrepreneurship makes the following contributions to the lives of the Filipinos: a. It provides guidelines in their wealth-creating ventures. b. Ithelps improve their financial and social life. c. Ithelps broaden their creativity. d._ Ithelps make their lives happy, fruitful, and successful 3. Entrepreneurship, in one way or another, makes the following contributions to the local community: a. It provides employment in the community b. Itcreates new demand in the market. ¢. Itmakes substantial contribution to the raising and collection of taxes, d._ It facilitates the movement of the factors of production. ¢, It creates new business opportunities f. Itpromotes a peaceful and loving community. g Itincreases constructive competition.4, Entrepreneurship makes the following contributions to the Philippine economy: a. It encourages competitiveness and thereby challenges entrepreneurs to keep improving their products and services. Ithelps find an entrepreneurial niche in the world market. Ithelps hasten the economic recovery process of the Philippines during, financial turmoil or crackdown. It facilitates the smooth flow of money in the local market. It assists the national government in its desire to have favorable economic ratings in the world market.