is defined as the process by which an

individual produces goods and services to

improve mans quality of life. He or she is
engage in business enterprise.

 are individuals who are highly enterprising and who

possess the following qualities:
1. Opportunity seekers They seek opportunities
to respond to the needs of consumers.
2. Persistent initiators They keep on trying
various alternatives to improve their services to people.

3. Committed workers When they make a

promise, they do all possible means to keep this.

4. Good planners They lay out plans

carefully, identify alternatives, follow up progress,
get feedback and try hard to achieve set goals.
5. Good planners They lay out plans
carefully, identify alternatives, follow up progress,
get feedback and try hard to achieve set goals.

6. Consistent hardworkers- They set

goals and continually try to improve performance
to reach their set goals.

7. Good setters They set short and

long term goals, which are specific, measurable
attainable, result-based and time-bound (SMART).
8. Information / feedback seekers
They personally seek important data on clients
and supplies as well as competitors.

9. Shrewd salesmen They apply

various strategies to follow up the progress of the
enterprise and influence the customers.

1O. Risk takers despite risks in

business enterprises, they take the chance of
investing.

1. Organizing ability an entrepreneur should

be wise enough in choosing the people with
whom he will work. He must choose people
who possess skills that are needed for the
improvement and success of the business.

2. Problem solving ability an entrepreneur

should be rational rather than emotional in
handling obstacles. He is also firm enough when
making decisions without hurting others.

3. Ability to absorb setbacks and recovery Analysis

in absorbing setbacks and recovery of the business are
important competencies of an entrepreneur. Accepting
and analyzing the difficulties encountered help in the
improvement and success of the business.

4. Human relations ability personality factors,

such as: emotional stability, personal relations,
consideration and tactfulness are important
contributors to the entrepreneur managers
success in small business. One of the most
important facets of human relations is one
ability to put himself in ones place to know how
the other person feels. This is the practice of
empathy.

An entrepreneur must maintain a good

relations with his customer, if he is to establish a
relationship that will encourage them to continue
patronizing his business. An entrepreneur should know
how to handle customer complaints directly. He must
train his employees to maintain a good customer
relations. Problems with employees can be worked out
on a face to face basis. If the problem is income, that
sometimes cannot sustain employees needs, then if
possible give them benefits, allowances and the like. So
that employees will cooperate to perform an effective
team work.

5. Communication ability An entrepreneur

should have the ability to communicate
effectively both orally and in writing.
Communication also means that both the
sender and the receiver understand and are
understood.

6. Ability to make sound decisions and take full

responsibility for decision made An
entrepreneur is the leader, the boss. All those
under him are dependent on the decisions he
make. Thus, he should have a sound judgment
which will be fair to all.

7. Persistence and patience to wait until

business really becomes successful
failure in running a business is not an
obstacle for an entrepreneurs. It will
instead be a challenge to their abilities to
handle it.

8. Technical knowledge on how to

operate the business a basic
knowledge in handling a business is
necessary for entrepreneurs in order
to be able to organize and manage a
business.

9. Sense of independence and selfconfidence an entrepreneur should have

trust to himself and in his work. His sound
judgment,
self-confidence
and
independence in his job will enable him to
succeed.

10. Good health and enthusiasm an

entrepreneur who is physically as well as
mentally fit would have a good chance of
success. He will be able to grapple with the
problems in the business.

1. Resources this refers to a new or reserve

source of supply of something. An enterprise
justifies its existence by converting resources
into desired outputs. Resource inputs of labor,
materials, ideas, government support, capital,
and the like are converted by the firm into
outputs of goods and services, employment,
stimulating experiences, markets, and other
things desired by those who provide the inputs.

2. Process determines how the product or service will be

produced.
Phases in the process selection:
a. Major technological choice- Does technology exist to produce
the product?
b. Minor technological choice What transformation process
will be used?
c. Specific component choice What type of equipment ( and
degree of automation ) should be used?
d. Process flow choice How should the product or service flow
the operation system?

3. Product / Service refers to the output of the enterprise. This is

influenced by the technology available and the operations structure
within the organization. It is a strategic task involving marketing ,
finance and operations.
Processes involved to determine the product or service to be
produced are:
a. Research generate the product/ service idea
b. Selection choose those that are technologically feasible,
marketable, and compatible with organizational strategy.
c. Design develop design specifications for the product or service.
d. Product it may be a tangible object, a service, or an idea that is
offered by one party in exchange for something money, patronage,
moral support, votes, and the like.

1. Generic Product in terms of what it is made of or

what comes out at the end of a production lineor what the
factory produces.
2. Formal Product another way of identifying a product
by its core or generic function and the manner by which it is
presented. Thus, the generic function in addition to the product
quality level, features, styling, brand , and package constitute
what is referred to as the formal product.
a. Product quality this refers to the ability of the
product to perform certain functions.
b. Product features the features of a product refer to
the structural characteristics are size, shape, form, color,
material, odor, and tactile qualities.

Correct combination of product features give added

attraction like:

Make the product easier to operate or use.

Ex. No-frost refrigerators, digital watches, and remote
control television set.
Improve the products durability or quality
Improve products appearance
Generate new uses for the product to make it more
versatile.

3. Product Style the style of a product refers to the aesthetic characteristics involve
in both the actual design, shapes, colors and other less clear-cut, ornamental features
which together help create an appealing , attractive and distinct product.

Profit these is income earned over an extended period of time. Profitability

ratios are designed to put company profits into perspective as a measure of the
organizations efficiency of operation.
Profit is not a cause but a result the result of performance of the business
marketing, innovation, productivity.
Productivity is, first , the test of performance.
Profit alone can supply the capital for tomorrows jobs, both for more and better
jobs.
Finally, profit pays for the economic satisfactions and services of society, from
health care to defense, and from education to the opera. That is the difference
between the value produced by economic activity and its cost.