Entrepreneurship Reviewer  Feedback Seeker

 Responsible
1. Entrepreneurial Era is an era wherein half a million  Committed
number of people worldwide started a new business in  Persevere
the year 2006.  Knows how to calculate risks
2. Money economy started when people use money in  Innovative
exchange for goods and services.  Has high tolerance for failure
3. Entrepreneurship is an activity of setting up a business  Knowledgeable about opportunity
which is also known as a way of thinking, reasoning and 19. Skills that entrepreneurs should possessed
acting.  Ability to plan
4. Entrepreneurship is a cohesive process of creativity,
 Marketing Skills
risk-taking and planning.
 Leadership Skills
5. Business entry is fundamentally a different activity
 Interpersonal Skills
than managing a business.
 Communication Skills
6. Joseph Schumpeter defined entrepreneurship as a
 Team Building Skills
force of “creative destruction”.
 Basic Management Skills
7. The concept of entrepreneurship was first established
20. Characteristics of a Good Business Idea
in the year 1700s; many people simply equate it as
“Starting one’s own Business”.  Fulfils a customer need
8. In the perspective of management, Entrepreneurs are  Innovative
the ones who identify opportunities, plans, mobilizes  Unique
resources, manages, and assumes the risk of a business  Clear Focus
to have a positive impact on the society.  Profitable in a long term
9. For economist perspective, Entrepreneur is someone 21. Factors to Consider in Starting a Business
who brings resources, labor, materials and other set of  Focus and Direction
combinations that make their value greater than  Good Network
before: also one who introduces changes, and  Sources of Capital
innovation.  Legal Requirements
10. For psychologist perspective, Entrepreneur person who  Personal Competencies
is ‘typically driven by certain forces such as the need to  Degree of Risk
obtain or attain something, to experiment to  Availability of Resources
accomplish,” is an Entrepreneur.  Research and Development
11. According to Global Entrepreneurial Monitor, “19 22. In today’s generation, the perspective of Self
million Filipinos, or 39% of the population, are engaged Confidence quoted as “WE CAN DO IT”.
in various types of business activity and Philippines had 23. According to Camuffo, Gerli and Gubitta,
the highest established business globally”. entrepreneurial competencies are the sum total of the
12. The structure of the society economy, education, and personality, skills, and knowledge that the
political system was influenced greatly during the entrepreneur possesses which can be divided into
colonization of Spain, Japan, and the USA of the three competencies namely:
Philippines.  Functional competency is organized into
13. Entrepreneur is someone who identifies opportunities, cluster, regarding to the main areas of
plans, mobilizes resources, manages, and assumes the managerial knowledge such as accountancy,
risks of a business to have a positive impact on society. finance, operation and human resource.
14. Peter Drucker defined entrepreneur as “someone who  Emotional competency are specific behaviours
actually searches for change, responds to it, and grouped into five clusters:
exploits change as an opportunity”.  Self-Awareness is a behaviour which
15. Peter Drucker is a business expert who proposes ensures that you should evaluate
“change” as a new way of giving development to the yourself according to the individual’s
entire business operation. physical and emotional aspects.
16. Entrepreneur think differently than non –  Self-Management
entrepreneurs, they are more intuitive than non-  Social Awareness
entrepreneurs.  Relationship Management
17. Entrepreneurs oftentimes think this way:  Cognitive Competencies
 Actuate Self-Assessment and Choose Course  Cross-Functional Competency is a broad overall
of Action skills that are grouped into goal and action
 Generate multiple decision model is a thinking management cluster, people management
process enables the entrepreneur to reflect, cluster, and analytical reasoning cluster.
comprehend and control one's learning and 24. Decision making is a core competency.
intellectual ability. 25. Ways on how Entrepreneurs make decisions:
 Learn from Failure  Rational/Scientific Method – This involves the
18. Personal traits or characteristics of entrepreneurs: use of the standard six steps process to arrive
 Passionate at a decision.
 Confident  Identify the problem
 Creative  Gather Data
 Disciplines Hardworking  Analyze Data
 Risk Taker  Formulate Alternative Solutions
 Opportunity Seeker  Select the best alternative
  Implement the Decision
 Use of Intuition – This pertains to the use of
“gut feel” to arrive at a decision.
 Affect Infusion – This suggests that
entrepreneurs’ current moods influence
decisions by influencing the ease with which
information consistent with positive or negative
moods can be brought to mind.
 Attribution Style - This refers to the
entrepreneurs’ self-serving bias. It means that
they will always network with industry
associations related to their business, reliable
circle of friends in the business, government
agencies and suppliers.
 Counterfactual Thinking – The afterthought in
decision-making in which the procedures
followed to perform the task are discussed, and
various alternatives that could have been
followed are considered.
 Over-Confidence – This refers to the tendency
of the entrepreneurs to think that they know
more than what they really know when they
make the decision.
 Knowing Style – This is the combination of
“analytical and conceptual thinking”, where the
entrepreneurs look for facts and data before
they make decisions.
 Creative Style – This is characterized by
“holistic and conceptual thinking”.
26. The internal factors in opportunity recognition consist
of personal characteristics of entrepreneur, prior
experiences, creativity, cognitive factors and social
networks.
27. The external factors in opportunity recognition consist
of environmental trends, economic factors, social
factors, and political and regulatory changes.
28. Need recognition occurs when a consumer discovers
an unmet need that must be fulfilled.
29. Potential Sources of Opportunity:
 Unexpected – Opportunities can be found
when situations and events are unanticipated.
 Incongruous situations happen when there are
inconsistencies in the way they appear.
 The Process Need – Opportunities could also
surface throughout the process of discovery.
 Industry and markets structures – Changes in
technology, social value and customers’ tastes
can change the structure of an industry and
market. These situations, will give
entrepreneurs opportunities to innovate their
product/services.
 Demographics – is the statistical data of a
population.
 Change – Changes of customers’ perception
can create opportunities to entrepreneurs.
 New Knowledge – These are new technologies
and new discoveries that can be sources of
information for entrepreneurs.
30. Career Paths:
 New Venture Creation: Launching a Company,
buying a business or franchise, starting a new
venture in a family enterprise, or
commercializing a technology.
 Careers in Existing Entrepreneurial Ventures:
Working for a start-up, small business,
corporate entrepreneur, strategic
entrepreneur, entrepreneurial unit or other
area, such as education, research, public policy,
and accelerators.
31. Entrepreneurship Career Opportunities for Academic
Track
 Business Consultant is someone who offer
services to client and to the company through
giving an advice for productive operation to a
certain business.
 A salesperson is someone who works in sales
and who introduces the products or services
offered by the company to consumers.
 Research and Development is someone who
understands the business concepts, systems,
procedures, and practices.
 Not-for-Profit Fundraiser is someone who can
raise funds and for him/her to raise funds, it
requires understanding the importance of
business and networking relationships.
 Teacher is someone who can teach students
how to increase their entrepreneurial intention
through acquiring the attitude towards
entrepreneurship.
 Talent Recruiter is someone who is people
savvy but also has an in-depth business sense
as well.
 Business reporter is a person who writes an
article and explains the entire transactions in
relation to business operation.
32. Business plan is a blueprint of the business that the
entrepreneur would like to establish.
33. Business plan is a written document describing the
nature of the business, the sales and marketing
strategy, and the financial background, and containing
a projected profit and loss statement.
34. Components of Business Plan:
 Executive summary is a part of the business plan
which consists of the following: description of
proposed business model, description of execution
plan, timeline and overview of the sales, marketing
and operating strategy plan.
 Management and Organization/Business Concept
is a part of the business plan consists of company
name, logo, workforce, personnel, and external
management.
 Product/Service plan is a part of the business plan
which consists of product’s unique features,
material requirements, source of supply and
distribution logistics.
 Market analysis refers to the analysis that studies
the demand and supply of the products that will be
offer in the market. A thorough market analysis will
help you define your prospects as well as help you
establish pricing, distribution, and promotional
strategies that will allow your company to be
successful vis-à-vis your competition, both in the
short and long term.
 Competitive Analysis is a section that defines the
competitive landscape of your business. It identifies
who the direct and indirect competitors are,
assesses their strengths and weaknesses and
delineates your company's competitive advantages.
 Marketing Plan details your strategy for
penetrating the target markets.
 Operating Plan This section details the internal
strategies for building the venture from concept to
reality.
  Financial Plan is a part of the business plan which
consists of financial projection, breakeven analysis,
budget and start-up costs requirements.
35. Types of Businesses:
 Micro Enterprise is also known as Home-based
enterprises.
 Has an asset size not exceeding
P50,000
 Usually a home-based enterprise
 Operating in temporary headquarters
 The owner is the head
 Employs 1-10 people only
 Cottage Enterprise
 Has an asset size of P50,000 but not
exceeding P500,000
 Usually a home-based enterprise
 Managed and operated by members of
the family
 Small Enterprise
 Has an asset size of P500,000 but not
exceeding P2,500,000
 Owned by individual or group
 Employs 10-20 people
 Medium Enterprise
 Has an asset size of P2,500,000 but not
exceeding P20,000,000
 Owned by individual or group
 Employs 100 or more workers
 Large Enterprise
 Has an asset size of P20, 000,000 or
more.
 Owned and managed by a corporation
 Employs 100 or more workers
 Operates in highly formalized but
complex systems of management.
36. Forms of Businesses based on ownership
 Single-Proprietorship - is owned and usually
managed by one person. They register with the
Department of Trade and Industry.
Advantages:
 Easiest way to set up
 Decision-making left entirely to owner
 Easy to dissolve
 Retention to all profits
 More flexibility
 Tax incentives and less government
regulation
Disadvantages:
 Demanding on owner’s personal time
 Growth limited by owner’s financial
means
 Unlimited liability
 Lack of stability
 Limited access to credit
 Limited business skills and knowledge
 Partnership - is an association of two or more
persons who act as co-owners of a business.
Each partner contributes money, property or
service to the business. They register with
Securities and Exchange Commission (SEC).
Advantages:
 Relatively easy to set up
 Check and balance maintained with
two or more owners
 Availability of more capital and credit
 Retention of profits to fewer owners
 Relatively easy to set up
 Check and balance maintained with
two or more owners
 Availability of more capital and credit
 Retention of profits to fewer owners
Disadvantages:
 Endangered by conflicts between
partners
 A decision made by one partner is
binding on all other partners
 Liability for debts incurred is unlimited
 Lack of stability
 Corporation -is an artificial being created by
operation of law, having the right of succession,
and the powers, attributes and properties
expressly authorized by or incident to its
existence. They register with the Securities and
Exchange Commission.
Advantages:
 Risks and losses are shared with the
other shareholders
 Maximum flexibility for growth
 Limited liability of individual
shareholders
 Greater room for professionalism in
management
 Easy to raise capital
 Assured of at least 50 years of
existence by law
Disadvantages:
 Complicated setting-up process
 Individual stockholders may have
limited influence on management
 Tendency to institutionalize a
bureaucracy
 Strictly regulated and supervised by the
government
 Cooperative -is a duly registered association of
persons, with a common bond of interest, who
have voluntarily joined together to achieve a
lawful common social or economic end, making
equitable contribution to the capital required,
and accepting a fair share of the risks and
benefits of the undertaking in accordance with
the universally accepted principles of the
cooperatives. They register with the
Cooperative Development Authority (CDA).
Advantages:
 Least likely to be dissolved
 Limited Liability
 More people benefit from the business
 Professional managers may be
employed by the members
Disadvantages:
 Shared control of the business
 Consensual decision making
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