What I Need to Know

Businesses are the backbone of the economy.

Entrepreneurs play an important role in developing the
economy through providing the needed products and
services including the solution to the problem of
unemployment. Entrepreneurship is encouraged by the
economy because it can provide a lot of opportunities for
the unemployed people. It will increase per capita income,
improve standard of living and increase individual savings,
provide revenue to the government in the form of income
tax, value added tax, export duties, import duties, and
balanced regional development.
So, what does this study provide you towards reaching
your dreams?
1. It outlines the concepts and basic principles, and
processes of developing a business plan.
2. It helps you understand the environment and market in
your locality as a factor in developing a business concept.
3. It allows you to experience starting and operating your
own business.
Substantial knowledge of entrepreneurial principles and
processes is important as this increases the chances of
making your business successful. In this lesson, you are
guided with a set of learning parts that will help you
understand the underlying principles of
entrepreneurship.
 What I Know
Before starting with this lesson, let us see what you already know
about Entrepreneurship. Answer the questions below.
Instruction: Read the statements carefully then write True if the
statement is correct & write False if you think the statement is not
correct.
____________ 1. Entrepreneur means “to undertake.”
____________ 2. Entrepreneurship is a process of actions of an
entrepreneur who is always in search of opportunities.
____________ 3. The greatest significance of entrepreneurship is to
help identify and develop the managerial capabilities of
entrepreneurs.
_____________ 4. Entrepreneurship will lead to the creation of
organizations.
______________5. Entrepreneurship can improve the life of the
entrepreneur only.
__________6. Coward people will become
successful entrepreneurs.
__________7. An entrepreneur is a “Risk Taker”.
__________8. Entrepreneurship is not an
economic activity.
__________9. Entrepreneurs are innovative.
__________10. Profit potential is the
compensation of the entrepreneur.
___________11. An entrepreneur can become a
business consultant.
___________12. An entrepreneur can also be a
researcher.
___________13. An entrepreneur can also
become a salesman.
___________14. Entrepreneurship graduates
can become business reporters.
___________15. The entrepreneur could easily
see the results of his efforts.
 Introduction to Entrepreneurship
• Before we will proceed to our lesson, can you tell
me what comes into your mind when you hear the
word Entrepreneur? Write it on your activity
notebook. (All answers will be accepted)
• Activity 1. Let Me Know Give at least five (5) names
of entrepreneurs that you know, may it be from
your locality or within the Philippines. Identify what
are their common traits as entrepreneurs. Write it
on your activity notebook and submit it to your
teacher
 Competencies of Entrepreneurs
Activity 2. Essay
Explain the following questions below about the
competencies of entrepreneurs.
1. What characteristics can you observe or see that
are common among the entrepreneurs that you
have listed?
2. 2. Who among the entrepreneurs that you
mentioned do you admire the most and why?
3. 3. In your own opinion, what do you need to
possess to become a successful entrepreneur?
RELEVANCE OF ENTREPRENEURSHIP TO AN
ORGANIZATION
• 1. Development of Managerial Capabilities - this
means that one of the benefits an entrepreneur gets is
to develop his managerial skills.
• 2. Creation of Organizations - which means that
because of entrepreneurship many organizations will
exist.
• 3. Improving Standard of Living - this means that
entrepreneurship can lift up the economic status of an
individual.
• 4. Means of Economic Development - this means that
not only the life of the entrepreneur is improved but
also the society where the business is located.
 Concept of Entrepreneurship
The word “entrepreneur” was derived from the
French verb entreprendre, which means “to
undertake.” This is pinpointing to those who
“undertake” the risk of enterprise. The
enterprise is created by an entrepreneur and the
process is called “Entrepreneurship.”
Entrepreneurs are innovators. They are willing to
take the risks and generate unique ideas that
can provide profitable solutions to the needs of
the market and the society.
Factors Affecting Entrepreneurship
1. Personality Factors which include:
a. Initiative - doing things even before being told.
b. Proactive - which means he can classify
opportunities and seize it.
c. Problem Solver - which means he can retain
good relations with other people.
d. Perseverance - meaning he will pursue things
to get done regardless of challenges.
e. Persuasion - means that he can
entice people to buy even if they don’t
want to.
f. A Planner - he makes plans before
doing things and does not fail to
monitor it.
g. Risk-taker - which means that he is
willing to gamble but he will calculate it
first.
2. Environmental Factors which include political, climate, legal
system, economic and social conditions and market situations.

• Common Competencies in Entrepreneurship

• 1. Decisive - an entrepreneur must be firm in
making decisions.
• 2. Communicator - an entrepreneur must have a
convincing power.
• 3. Leader - an entrepreneur must have the
charisma to be obeyed by his employees.
• 4. Opportunity seeker - an entrepreneur must have
the ability to be the first to see business chances.
5. Proactive – an entrepreneur can control a
situation by making things happen or by
preparing for possible future problems.
• 6. Risk Taker – an entrepreneur has the
courage to pursue business ideas.
• 7. Innovative - the entrepreneur has big
business ideas and he does not stop improving
and thinking of new worthwhile ideas for his
business.
 Core Competencies in
Entrepreneurship
1. Economic and Dynamic Activity -
Entrepreneurship is an economic activity
because it involves the creation and operation
of an enterprise with a view to creating value
or wealth by ensuring optimum utilization of
limited resources.
2. Innovative – The entrepreneur constantly looks
for new ideas, thus he needs to be creative.
• 3. Profit Potential - The
entrepreneur can be
compensated by his profit
coming from the operation.
• 4. Risk bearing – The
entrepreneur needs to gamble
but wise enough to offset the
risk.
 Types of Entrepreneurs
1. Innovative Entrepreneurs - They are
those who always make new things by
thinking of new ideas. They have the ability
to think newer, better and more
economical ideas.
• 2. Imitating Entrepreneurs - They are
those who don’t create new things but
only follow the ideas of other
entrepreneurs.
3. Fabian Entrepreneurs- They are skeptical about
changes to be made in the organization. They don’t
initiate but follow only after they are satisfied.
4. Drone Entrepreneurs – they are those who live
on the labor if others. They are die-hard
conservatives even ready to suffer the loss of
business.
5. Social Entrepreneurs - They are those who
initiate changes and drive socila innovation and
transformation in the vatious fields such as
education, health, human rights, environment
and enterprise development.
Career Opportunities of Entrepreneurship

1. Business Consultant - with the expertise

of in the field of entrepreneurship, he
can be a very good source of advices to
other entrepreneurs and would be
business men.
2. Teacher - a graduate of an
entrepreneurship can use his knowledge
in teaching.
3. Researcher - the entrepreneur can
be employed as a researcher by an
enterprise.
4. Sales - the entrepreneurship
graduate can apply as a salesman.
5. Business Reporter - the
entrepreneur being expert in the field,
can be employed as a business
reporter