Lesson 1: INTRODUCTION TO ENTREPRENEURSHIP
In his book, “Innovation and Entrepreneurship”,
Objectives
At the end of the lesson, you should be able to:
 Discuss the relevance of the course;
 Explain the nature of entrepreneurship and discuss the importance;
 Describe the entrepreneurship setting in the Philippines
Nature of Entrepreneurship
What is Entrepreneurship?
Setting a business begins from idea conception to managing a company
for the long term. It is the practice of starting a new business to take advantage
of the opportunities. For entrepreneur entrepreneurship is a state of mind. It
is not to be identified or measured with the type of business they have. It is
their total way of life.
Generally, entrepreneurship is not an easy proposition. A lot of new
businesses fail to continue due to many reasons. As an entrepreneur, you have
to be aware of entrepreneurial activities since they vary depending on the kind
of business they are involved in. Oftentimes, entrepreneurship is associated
with uncertainty especially when creating a new product when there is no
exiting in the market yet. Even if there is a market, there is no assurance that
it would create a huge opportunity for the entrepreneur. It also involves being
resourceful in obtaining the resources to achieve the objectives of the business.
Entrepreneurs need to find ways and think out-of-the-box to improve their
chance in attaining their goals.
According to Peter Ducker, entrepreneurship centers on innovation. He
said that entrepreneurs need to search purposefully for the sources of
innovation, the changes and their symptoms that indicate opportunities for
successful innovation.
emphasized the “discipline” in the process of starting and managing a business.
Even if the contributions for entrepreneurship can vary (i.e., being an agent of
rapid economic growth or being an avenue for inclusive growth), what is
important is the system entrepreneurs follow to achieve their goals.
Entrepreneurship and Economic Development
Economic development is a scheme aimed at improving the living
standards of the nation’s citizenry. To achieve economic development goals,
proper management of the following elements is necessary: Human resources
(labor supply, education, discipline, motivation); natural resources (land,
minerals, fuel);capital formation (machines, factories, roads); and technology
(science, engineering, management, entrepreneurship).
The effective and efficient utilization of the various resource elements
contribute to the economic growth. This happens when the element of
entrepreneurship is performed well by the players. The abundance of natural
resources like fertile land, minerals, fuels and good climate plus factors but are
not guarantees for positive economic development. There is a need for
entrepreneurs to perform the function of harnessing potentials of any or all the
various elements, determining the right quantity resources needed, and
applying the elements at the right time.
The performance of the entrepreneur, however, will depend much on the
support provided by the government. Apart from other obstacles, government
restrictions limit the effectiveness of entrepreneurs.
Definition of Entrepreneurship:
 Entrepreneurship is the Capacity and willingness to develop, organize
and manage a business venture along with any of its risks in order to
make profit. (BusinessDictionacy.com)
Entrepreneurship
  Entrepreneurship is defined as a science of converting ideas into
business and is related to economic activity of a person who starts,
manages, assumes the risk of a business enterprise.
Entrepreneurship in the Philippines
2. Entrepreneur’s participation in the world business also means a source
of revenue for the government through taxes;
3. The products and service produced by every entrepreneurs becomes
sense of pride and identity for a country;
4. Innovation, creation of new markets and development of new products
improves the quality of life of an entrepreneur.

The Philippines is a highly entrepreneurial country. Poverty is the main Filipino Values
reason that drives Filipinos to have entrepreneurial spirit. The existing values and culture of Filipinos significantly affects the
In an article written in the International Entrepreneurship website, it is business and the buying decisions of the entrepreneurs. Having diverse
said that largest share of Philippine entrepreneurs belongs to small and cultural influences, these values manifest in their everyday lives and their
medium-sized enterprise (SME). It was accounted that 99 percent of all dealings with business.
business establishments are SME’s. including micro-enterprise, and 60 percent Here are some common Filipino values and traits that resulted from
of the exporting firms in the Philippines. About 55 percent of the Philippine their long history:
labor force is currently employed in SME’s and significantly contributes 30
percent to total domestic volume sales in the country. Most of the 1. The Trait of Hospitality
entrepreneurs in the Philippines are women who also hold significant 2. Segurista (one who doesn’t take risk)
leadership position in the country. 3. Gaya-gaya (copy-cat)
Philippine Government sees the opportunity of entrepreneurship that is 4. Bayanihan
why they are aggressive in welcoming foreign investors and opening the entire 5. Pakikisama
economy by offering incentives and giving support. However, entrepreneurs in 6. Close Family Ties
the Philippines experience great challenges. For most entrepreneurs who are 7. Ningas Kugon
starting the business, financing is the most challenging factor as they have 8. Never on Time
difficulty in acquiring capital. Also the lack of research and development, 9. Mañana Habit
inadequate access to technology, lack of marketing advice or knowledge and 10. Balat Sibuyas
logistical problems are said to be included in the challenges they face. 11. Crab Mentality
At present, entrepreneur plays a major role in providing employment for 12. Bahala Na
the entrepreneur himself and his immediate environment. The impact of 13. Utang na Loob
entrepreneurship in the economy also brings socio-economic benefits. 14. Kanya-Kanya
15. Resilient
1. Every entrepreneur assists the government by providing employment for 16. Being Politically Involved
himself and to the other people working in his company;
Entrepreneurship
How do these values and traits affect the business dealings and decision Name: ____________________________________ Score:____________
making of Filipino entrepreneur? Grade & Section:___________________________ Date: _____________

Characteristics of Filipino Entrepreneurs

ACTIVITY 1

1. There are more females than males that are engaged in the early stage
A. Choose five (5) from the list of values that you consider has great effect
of entrepreneurial activities.
on the business dealings of Filipino entrepreneurs. Write the pros and
2. In terms of age, entrepreneurship in the country attracts more young cons on the space provided.
individuals. Values and Traits Pros Cons

3. In terms of educational attainment, almost half of entrepreneurs in early

stage have finished secondary schools.

4. Majority are engaged in early stage entrepreneurial activities in the

Philippines are in consumer service. (Retail, food, personal beauty care,
appliance and electronic repair, cleaning services, and laundry
services).

5. Filipino entrepreneurs are also engaged in manufacturing, extractive

enterprises, and business services (advertising, architecture,
consultancy, micro finance and others).
6. Filipino entrepreneurs are fearful of business failure.
B. Complete the statements below. Write your answer on the space
provided.
_______________ 1. Is a science of converting ideas into business and is
related to the economic activity of a person who starts,
manages, and assumes risk of a business.
_______________ 2. The main reason that drives Filipinos to have an
entrepreneurial spirit is __.

Entrepreneurship
_______________ 3. The trait of __ describes Filipinos to be cordial and
accommodating.
_______________ 4. The practice of __ creates an atmosphere of unity and
concern among Filipinos.
_______________ 5. A __ is a trait wherein Filipinos excitedly begin the task
without finishing what they have started.
Case 1: Rose Restaurant: What now my Love?
On any given day, Rose restaurant is full of customers. It is not surprising
because of two factors: first, its location in the center of the commercial district
of Santiago City, and second, the dynamism of its owner and manager, Mrs.
Rosemarie Ginez. She is more than happy because she was able to realize
her dream of becoming successful in the food business. She now owns the
building and the lot she used to rent. Served in its large air-conditioned function
hall are native and Chinese delicacies. The place has ample parking space for
20 cars.
It was the restaurant where she first met her future husband. He is a
government employee and is assigned to work nearby town. Rose’s husband
is a native of San Jose City and his widowed mother is operating a big palay
trading firm. Apart from owning 10 cargo trucks, his mother owns one and a
half hectares of commercial land in the city’s business district.
Just as Rose was considering opening a branch of her restaurant in
Cauayan City, his mother-in-law died. Two weeks later, her husband informed
her that being the heir, he needs to move quickly to San Jose City and manage
his mother’s business and other properties.
Even if her husband operates her mother’s business, Rose could still
continue managing her restaurant. Both of them, however, are aware of
difficulty of maintaining the two businesses which are four hours away by car
from each other. They will miss each other for days every week if they decide
to keep both business. Her husband is indifferent, however, on whatever
Rose’s decision will be.
Rose is now mulling over her family’s chances of succeeding in business
if she decides on maintaining only the palay trading firm. Her decision-making
is made more complicated when her assistant reported a 49% increase in last
year’s profits of her restaurant.
Guide Questions
1. Should Rose stop operating her restaurant?
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2. If you were Rose, what additional information would you need before
making a decision?
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Entrepreneurship